Czech Republic: Economic sentiment improves to highest level in nearly four years
October 27, 2014
In October, the economic sentiment indicator published by the Czech Statistics Office (CSO) inched up from 93.7 points in September to 94.1 points. As a result, the index reached its highest level since February 2011. October’s increase resulted from an improvement in consumers’ confidence, while businesses were more pessimistic compared to the previous month. However, despite the rise, the index remains below its 100-points long-term average.
Business sentiment index inched down from 93.2 points in September to 92.8 points in October, thus reaching the lowest level since August. According to the CSO, the deterioration in business sentiment was felt particularly in firms in the industry, construction and services sectors. On the other hand, sentiment among businesses in the trade sector improved compared to the previous month.
The consumer confidence index rose from 96.3 points in September to 100.2 points in September. The index now sits at its highest level since April 2008. According to the survey, consumers in October were less worried about their own financial situation as well as about an increase in the unemployment rate, compared to September. However, their concern about rises in prices was unchanged to the previous month.
Author: Dirina Mançellari, Senior Economist