Czech Republic: Economic sentiment deteriorates in February
February 24, 2017
The economic sentiment indicator published by the Czech Statistics Office (CSO) dropped from January’s 99.2 points to 98.0 points in February, a bit further from its 100-point average. The reading reflected a deterioration in both business and consumer confidence and marked the lowest reading in four months.
The sub-indicator of business confidence edged down in February to 95.9 points from January’s 97.0 points. The reading reflected lower sentiment in three out of the four sectors covered by the index: industry, trade and services. In the construction sector, confidence increased from the previous month’s level. In the industry sector, businesses’ expectations for the general economic situation in the next three months increased compared to January, and remained unchanged for the next six months. In the construction sector, businesses’ expectations for both the next three and six months increased. Regarding trade, firms’ expectations for the next three months did not change while they increased slightly for the next six months. Lastly, in the services sector, businesses’ expectations for the next three months remained unchanged and deteriorated for the next six months.
Consumer confidence dipped in February to 108.2 from January’s multi-year high of 110.0. According to the survey, households’ assessments of the economic situation in the next twelve months decreased, while their assessments of both their financial standing and unemployment prospects remained virtually unchanged from the previous month. Households declared that they were less willing to save money and that their concern about future price increases had barely changed.