Czech Republic: Economic sentiment continues to gradually improve in June
June 24, 2020
The economic sentiment indicator, published by the Czech Statistical Office (CSO), continued to climb from April’s over two-decade low in June, coming in at 77.2 (May: 75.1).
The business confidence index bounced back in June to 93.3 (May: 91.9) after declining for five consecutive months. The increase was mainly driven by improving sentiment in the trade and services sectors as economic activity has started to gradually firm. Meanwhile, sentiment in the all-important industrial sector turned more pessimistic while confidence in the construction sector declined.
Similarly, consumer confidence strengthened again in June, with the consumer confidence index climbing from 91.9 in May to 93.3 in June. Notably, households were less concerned over a deterioration of their financial situation and unemployment prospects in next 12 months. Despite the improvement, however, consumer confidence remained well below its long-term average.
Author: Javier Colato, Economist