Czech Republic: Economic sentiment falls to a near one-year low in July
July 24, 2018
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), dipped from 100.0 in June to 98.7 in July—the lowest in 11 months. As a result, the indicator slipped below the 100-point mark that separates optimism from pessimism in the Czech economy.
The business confidence index declined from 97.4 points in June to 96.1 points in July, a one-year low. The deterioration came on the back of more downbeat sentiment in the industry and services sectors, which more than offset a slight improvement in confidence in the construction and trade industries.
Similarly, consumers were less optimistic in July, with the consumer confidence index falling to a seven-month low of 111.8 points from 113.0 points in the previous month. The drop was largely due to consumers’ more negative assessment of the overall economic situation in the next 12 months. Nonetheless, consumer confidence remained well above the historical average.
Author: Javier Colato, Economist