Czech Republic: Economic sentiment decreases slightly in July on businesses
July 24, 2014
The economic sentiment indicator published by the Czech Statistics Office (CSO) inched down from 93.6 points in June to 93.0 points in July, which marked the first drop in the index after four consecutive months of increase. July’s result mainly resulted from businesses being less optimistic and, although sentiment among consumers improved, it was not substantial enough to push the index back to its 100-point long-term average.
According to the CSO, the decrease in business sentiment was felt particularly in firms in the industrial and services sectors. Sentiment among businesses in the construction sector was virtually unchanged compared to the previous month, while businesses in trade were more upbeat.
Consumer confidence continued to rise and reached the highest point in over six years in July, which indicates that households are more optimistic about the overall economic situation in the next 12 months. Consumers’ views regarding their own financial standing was unchanged over the previous month, while their assessments regarding the labor market improved.
Author: Ricardo Aceves, Senior Economist