Czech Republic: Economic sentiment falls to 30-month low
June 25, 2012
The economic sentiment index published by the Czech Statistical Office fell to 84.6 points in June from 85.3 points in May, driving the index to levels last seen in December 2009. As a result of the monthly decline, the index is now 6.6 points below the level observed in the same month last year. According to the statistical institute, business sentiment deteriorated over the previous month, with the sub-indicator of business confidence falling to its lowest level since March 2010. Accordingly, a majority of firms showed a more pessimistic assessment about the current economic situation, especially in industry, construction and services. Moreover, a majority of businesses in the industrial and in the trade sectors revealed a more pessimistic assessment regarding the economic outlook for the next six months. Meanwhile, after plunging to its lowest level since 1999 in May, the consumer confidence index improved somewhat in June. Respondents to the survey showed somewhat less concerns about the general economic situation in the next 12 months. Consequently, a majority of consumers also showed a less pessimistic assessment about their own financial situation. However, more consumers in June expected unemployment to increase compared to the previous month.
Author: Ricardo Aceves, Senior Economist