Czech Republic: Economic sentiment bounces back from near four-year low in August
August 26, 2019
The economic sentiment indicator, published by the Czech Statistical Office (CSO), climbed to 95.6 in August from 95.1 in July, which had marked the worst reading since October 2015. As a result, the indicator moved closer up to the 100-point mark that separates optimism from pessimism in the Czech economy.
The business confidence index bounced back after three consecutive months of decline in August, coming in at 93.6, up from 92.8 in July. The print largely reflected improved sentiment in the trade and services sectors, which more than offset a marked drop in confidence in construction. Confidence in the industrial sector, meanwhile, held stable again in August.
In contrast, consumers turned less optimistic in August, with the consumer confidence index slipping to 105.1 from 106.4 in the previous month. The downturn was chiefly due to households’ weaker expectations over the general economic and unemployment situation ahead. That said, consumer confidence remains well above the historical average.
Author: Javier Colato, Economist