Czech Republic: Economic sentiment falls to two-year low in March
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), tumbled from 98.2 points in February to 97.0 in March, a two-year low. As a result, the indicator moved further below the 100-point mark that separates optimism from pessimism in the Czech economy.
The business confidence index dipped from 96.5 in February to 95.5 in March. The print reflected weaker sentiment in the industrial, trade and services sectors more than offsetting higher confidence in the construction sector.
Similarly, consumers turned less optimistic in March, with the consumer confidence index declining to 104.6, the lowest reading since August 2016 (February: 106.4). The slump was largely due to a deterioration of households’ assessment over their financial standing and the unemployment situation ahead compared to February. That said, consumer confidence remains well above the historical average.