Czech Republic: Economic sentiment drops in April
April 24, 2013
The economic sentiment indicator published by the Czech Statistical Office fell to 81.9 points in April from the 84.4 points recorded in March. As a result, the index now sits 4.7 points below the level registered in the same month last year.
The monthly decline showed a drop in both business and consumer sentiment. In April, the business confidence sub-indicator fell to its lowest level in more than three years, mainly reflecting deteriorating business prospects in industry, construction and trade. FocusEconomics panellists anticipate fixed investment to drop 0.1% this year, which is down 0.3 percentage points from last month's projection. For 2014, panellists expect investment to expand 2.7%.
Meanwhile, the consumer confidence sub-indicator fell back in April, after the index had reached a 20-month high in March. The reading reflected consumers' more pessimistic view of the general economic situation in the next 12 months, while their assessment regarding their own financial standing did not change. Meanwhile, households showed more pessimism about developments in the labour market.
FocusEconomics Consensus Forecast participants anticipate private consumption to contract 0.2% in 2013, which is down 0.2 percentage points from last month's projection. For 2014, the panel sees private consumption growing 1.4%.
Author: Ricardo Aceves, Senior Economist