Czech Republic: Economic sentiment edges up in February
February 25, 2019
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), ticked up to 98.2 in February from 98.0 in January, which had marked an 18-month low. As a result, the indicator moved closer to the 100-point mark that separates optimism from pessimism in the Czech economy.
The business confidence index climbed from 95.7 in January to 96.5 in February. The print reflected improved sentiment in the industrial and services sectors more than offsetting weaker sentiment in the trade and construction sectors.
In contrast, consumers turned less optimistic in February, with the consumer confidence index sliding to 106.4 from 109.2 in the previous month. The dip was largely due to a deterioration in households’ assessment over their capacity to save and the general economic situation ahead compared to January. That said, consumer confidence remains well above the historical average.
Czech Republic Private Consumption Forecast
FocusEconomics panelists expect private consumption to expand 3.2% in 2019, which is up 0.1 percentage points from last month’s projection, and 2.7% in 2020. Meanwhile, fixed investment is seen increasing 4.3% in 2019, which is unchanged from last month’s estimate, and 3.6% in 2020.
Author: Javier Colato, Economist