Czech Republic: Economic sentiment falls in May from a near ten-year high

The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), dipped to 99.2 points in May from 100.1 points—a near ten-year high—in April. As a result, the indicator slipped just below the 100-point mark that separates optimism from pessimism in the Czech economy.

The business confidence index declined to 96.2 points in May from 97.6 points in April, reflecting more downbeat sentiment across the four key industries covered by the index. Confidence deteriorated the most in the trade and industry sectors.

However, consumers grew more optimistic in May, with the consumer confidence index climbing to an all-time high of 113.8 points from 112.5 points in the previous month. The improvement in confidence was mainly due to consumers’ rosier view regarding the general economic situation in the next 12 months.

Czech Republic Private Consumption Forecast

FocusEconomics panelists expect private consumption to expand 4.0% in 2018, which is unchanged from last month’s projection. For 2019, the panel sees private consumption growing 3.2%. Meanwhile, fixed investment is seen increasing 5.7% in 2018, which is up 0.2 percentage points from last month’s projection. For 2019, panelists expect fixed investment to expand 4.2%.