Czech Republic: Economic sentiment reaches highest level in over three years
April 24, 2014
The economic sentiment indicator published by the Czech Statistical Office (CSO) inched up from 92.4 points in March to 92.6 points in April, which marked the highest level since March 2011. The reading mainly reflected higher confidence among Czech consumers, while business sentiment was virtually unchanged. As a result of the increase, the index moved slightly closer to the 100-point long-term average.
Confidence among consumers increased notably in April, reaching levels last seen six years ago. The improvement reflected households' more optimistic views regarding the country's overall economic situation for the next 12 months as well as for their future financial situations. Consumers' views on the future conditions in the labor market were unchanged over the previous month. FocusEconomics panelists expect private consumption to expand 0.9% in 2014, which is unchanged from last month's projection. For 2015, the panel sees private consumption growing 1.7%.
Business confidence was virtually unchanged in April, after reaching its highest level since October 2011 in March. The reading reflected that greater confidence in industry offset lower sentiment in trade, construction and selected services. FocusEconomics panelists see fixed investment increasing 1.9% in 2014, which is unchanged from last month's projection. For 2015, panelists expect investment to expand 3.3%.
Author: Ricardo Aceves, Senior Economist