Czech Republic: Economic sentiment falls to four-month low
April 24, 2012
The April economic sentiment indicator published by the National Statistics Office fell to 86.6 points from 88.0 points in March, which represents the lowest reading since December 2011. As a result of the monthly drop, the index remains 5.0 points below the level observed in the same month last year. The April reading reflected a deterioration in business confidence, as a majority of business assessed both their current business situation as well as their business prospects as less favourable compared to the previous month. Deteriorating business confidence does not bode well for investment going forward. On a positive note, consumer confidence improved slightly over the previous month, although the index remains 11.6 points below the level observed in the same month last year. According to the April survey, consumers showed less concern regarding the general economic situation in the next 12 months. Respondents also judged their own financial situation in less pessimistic terms compared to the previous month. Finally, fewer respondents expected unemployment to increase.
Author: Ricardo Aceves, Senior Economist