Czech Republic: Economic sentiment improves to highest level in three-and-a-half years
September 24, 2014
In September, the economic sentiment indicator published by the Czech Statistics Office (CSO) inched up from 93.4 points in August to 93.7 points. As a result, the index reached its highest level since February 2011. September’s slight improvement resulted from businesses being more optimistic, while consumer confidence was lower compared to the previous month. Despite the slight increase, the index remains below its 100-point long-term average.
Business sentiment index rose from 92.5 points in August to 93.2 points in September, thus reaching the highest level since June 2011. According to the CSO, the improvement in business sentiment was felt particularly in firms in the industry, construction and trade sectors. On the other hand, sentiment among businesses in the services sector was unchanged compared to the previous month.
The consumer confidence index fell from 97.9 points in August to 96.3 points in September. The index now sits at its lowest level in seven months. According to the survey, consumers in September were more worried about an increase in the unemployment rate, compared to August. In addition, their views regarding the country’s economic situation for the next 12 months and their own financial standing were more pessimistic compared to the previous month.
Author: Dirina Mançellari, Senior Economist