Czech Republic: Economic sentiment reaches highest level in over two years
November 25, 2013
The economic sentiment indicator developed by the Czech Statistical Office (CSO) jumped to 90.4 points in November, up from the 88.9 points recorded in October. The indicator now sits at its highest point since October 2011 and primarily reflects the notable improvements recorded in both business and consumer confidence.
Business confidence rose to the highest point since March 2012, reflecting higher confidence levels in industry, whereas confidence in trade was unchanged. Business sentiment regarding selected services and confidence in construction waned to a certain extent. FocusEconomics panelists see fixed investment falling 3.5% this year, which is down 0.4 percentage points from last month's projection. For 2014, panelists expect investment to rebound and expand 2.2%, which is unchanged from last month's Consensus.
Consumer confidence also improved in November, rising to its highest level in nearly three years. According to the CSO, consumers are less pessimistic regarding the country's overall economic situation for the next 12 months and future conditions in the labor market. Households' view over their future financial situations was unchanged in November.
Forecasters surveyed by FocusEconomics expect private consumption to expand 0.3% in 2013, which unchanged from last month's projection. For 2014, the panel sees private consumption growing 1.3%, which is also unchanged over the previous month's Consensus.
Author: Ricardo Aceves, Senior Economist