Czech Republic: Economic sentiment falls in February
February 22, 2011
In February, the economic sentiment index produced by the National Statistics Office fell to 94.2 points from 95.6 points in January, which represented the second consecutive month of deteriorating economic sentiment. The indicator sits 6.9 points above the level observed in the same month last year, but remains below the 100-point threshold that separates optimistic from pessimistic economic sentiment. The monthly fall reflected deteriorations in both components of the index (consumer and business sentiment). Consumer confidence dropped, on the back of consumers' less optimistic assessment about future economic prospects for the next 12 months, as well as deteriorating expectations regarding their own financial standing. Business sentiment also fell, mainly fuelled by weaker confidence in the industrial and construction sectors.
Author: Ricardo Aceves, Senior Economist