Czech Republic: Economic sentiment improves in January
January 24, 2012
The January economic sentiment indicator published by the National Statistics Office rose to 87.2 points from 85.0 points in December, which had marked the lowest sentiment level since December 2009. Despite the improvement, however, the index remains 8.4 points below the level observed in the same month last year. The January rise reflected improvements in both sub-indicators of the index, particularly in the consumer confidence sub-index. According to the January survey, businesses' assessment of the current economic situation was less pessimistic than the previous month. Moreover, a higher number of firms expect economic activity to improve in the next three months and consequently anticipate an increase in total demand. Simultaneously, consumer confidence increased after having fallen to its lowest level since September 1999 in December. Accordingly, a majority of consumers are now less concerned than in the previous month that the general economic situation will worsen in the next 12 months. Moreover, respondents to the January survey assessed their own financial situation less pessimistically than the previous month and fewer respondents expect a rise in unemployment.
Author: Ricardo Aceves, Senior Economist