Czech Republic: Economic sentiment remains largely unchanged in May
May 24, 2017
The economic sentiment indicator published by the Czech Statistics Office (CSO) remained largely unchanged in May. It declined very slightly by 0.2 points from previous month’s result to 97.2 points. While there was a slight deterioration in business confidence, consumer confidence did not change from the previous month.
The business confidence sub-indicator fell from April’s 95.1 points to 94.9 points in May. The reading reflected a more notable deterioration in sentiment in two out of the four sectors covered by the index: construction and trade. Meanwhile, confidence in the industrial sector dipped very slightly by 0.1 points from the previous month; whereas in the service sector, it remained unchanged. Confidence in trade declined the most with a worse assessment of the current economic situation while expectations for the economic situation over the next three and six months were unchanged. On the other hand, in the construction sector, businesses’ expectations regarding the economic situation for the next three and six months deteriorated. The industrial and services sectors recorded no change in expectations for the next three months. And while expectations for the next six months remained steady in the industrial sector, they improved in the services sector.
Consumer confidence in May remained at the same value as April at 108.4. According to the survey, households were more concerned about a decline in the overall economic situation over the next twelve months, although their assessments of both their financial standing and unemployment prospects were unchanged from the previous month. The share of households that intend to save money increased in May compared to April, while there was no change in concern over future price rises.
Author: Nihad Ahmed, Economist