Czech Republic: Economic sentiment inches down at the end of Q1
March 26, 2018
The economic sentiment indicator, a composite confidence indicator released by the Czech Statistical Office (CSO), was broadly unchanged at the close of the first quarter of 2018, according to figures released on 26 March. Economic sentiment came in at 99.7 points, inching lower from the prior month’s reading of 99.9 points, chiefly due to lower business confidence as consumer sentiment continued to improve. As a result, the indicator remained just below the 100-mark that separates optimism from pessimism in the Czech economy.
Business confidence slipped to 97.0 points in March from 97.5 point in the prior month. More upbeat sentiment in the industry and construction sectors was offset by a deterioration in sentiment in the trade and services industries.
Consumer confidence, however, increased slightly from the prior month’s reading of 112.0 points to 112.8 points in March. The increased optimism among consumers was primarily thanks to consumers’ improved outlook on their financial situations and on price developments.
Czech Republic Private Consumption Forecast
FocusEconomics panelists expect private consumption to expand 3.9% in 2018, which is up 0.2 percentage points from last month’s projection. For 2019, the panel sees private consumption growing 3.1%. Panelists see fixed investment increasing 5.4% in 2018, which is down 0.1 percentage points from last month’s projection. For 2019, panelists expect fixed investment to expand 4.1%.
Author: Jan Lammersen, Economist