Czech Republic: Economic sentiment slips in November
November 26, 2018
The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), dipped from 99.8 points in October to 99.3 in November. As a result, the indicator moved further below the 100-point mark that separates optimism from pessimism in the Czech economy.
The business confidence index edged up from 97.3 in October to 97.8 in November, the highest reading since July 2008. The print reflected improved sentiment in the construction and services sectors more than offsetting a deterioration in confidence in industry and trade.
In contrast, consumers turned less optimistic in November, with the consumer confidence index falling to an over-year low of 106.9 points from 112.0 in October. The drop was mainly due to consumers’ increased wariness over the labor market and general economic situation in 12 months’ time. Nevertheless, consumer confidence remains well above the historical average.
Czech Republic Private Consumption Forecast
FocusEconomics panelists expect private consumption to expand 3.2% in 2018, which is unchanged from last month’s projection, and 2.5% in 2019. Meanwhile, fixed investment is seen increasing 4.2% in 2018, which is down 0.1 percentage points from last month’s estimate, and 3.5% in 2019.
Author: Javier Colato, Economist