Czech Republic: Economic sentiment falls to five-month low dragged down by consumer confidence
May 24, 2012
The May the economic sentiment indicator published by the Czech Statistical Office fell to 85.3 points from 86.6 points in April, which represents the lowest level seen since December 2011. As a result of the monthly deterioration, the index now sits 5.9 points below the level observed in the same month last year. After improving slightly in April, consumer confidence plunged to levels not seen since 1999. According to the May survey, consumers revealed more concerns regarding the general economic situation in the next 12 months. Consequently, a majority of consumers also showed a more pessimistic assessment about their own financial situation. In contrast, fewer respondents in April expected unemployment to increase compared to the previous month. Moreover, the May survey displayed a deterioration in business confidence, with a majority of businesses showing more concerns about the current business situation and their business prospects for the next six months. Only firms in the trade sector were more optimistic about their six-month business expectations.
Author: Ricardo Aceves, Senior Economist