Czech Republic: Economic sentiment rises in October
October 24, 2011
In October, the economic sentiment indicator published by the Czech Statistical Office rose to 90.4 points from 87.6 points in September. The reading represented the first improvement after the index fell for almost nine uninterrupted months, reaching its lowest level since March 2010. The index now sits 1.2 points below the level registered in the same month last year. The rise in October was broad based, as both sub-components of business and consumer confidence improved over the previous month. While firms continue to hold a more pessimistic view of the current economic situation, the monthly rise in business confidence reflected businesses' more upbeat assessment of the economic situation in the next six months as well as higher expectations for an increase in total demand, particularly in the services and trade sectors. Meanwhile, consumer confidence also improved over the previous month, but continues to sit at similar levels to those seen during the financial crisis in 2009. According to the Statics Office, the reading showed that consumers are less afraid that the general economic situation will worsen in the year ahead. Consequently, respondents to the October survey assessed their own financial standing more optimistically compared to the previous month. Moreover, less respondents to the October survey expect a rise in unemployment.
Author: Ricardo Aceves, Senior Economist