Czech Republic: Economic sentiment climbs to 18-month high
September 25, 2013
The economic sentiment index published by the Czech Statistical Office (CSO) rose to 87.5 points in September, up from 84.8 points in August. The index reached its highest point since March 2012 and reflects notable improvements in both business and consumer confidence.
Business confidence rose to 87.5 points in September (August: 84.8 points) - the highest level since May 2012 - and was boosted by a widespread improvement across all sub-sectors of the economy. Industry and construction were the sectors that recorded higher confidence levels. FocusEconomics panelists see fixed investment falling 2.1% this year, which is down 0.2 percentage points from last month's projection. For 2014, panelists expect investment to rebound and expand 2.2%.
Consumer confidence also improved notably in September (87.7 points), rising to its highest level in more than two years. According to the CSO, although households maintained their assessment regarding future job prospects, they are more optimistic about the overall economic situation for the next 12 months.
Analysts polled by FocusEconomics expect private consumption to show zero growth in 2013, which is unchanged from last month's projection. For 2014, the panel sees private consumption growing 1.2%.
Author: Ricardo Aceves, Senior Economist