Czech Republic: Economic sentiment strengthens in December
December 27, 2010
The economic sentiment index rose from 92.7 points in November to 95.8 points in December. The increase saw the index reaching its highest level since August 2008. On an annual basis, the index is 11.7 points above the level observed in the same month last year. The increase in economic sentiment reflected improvements in consumer sentiment (+2.6 points) and business confidence (+3.2). Consumer confidence rose as a result of consumers' more optimistic assessment about economic prospects over the next twelve months, as well as improving expectations of their personal financial position. In addition, consumers expect positive developments in the labour market. Business confidence also improved, rising for the third consecutive month. This increase was reflected in stronger expectations regarding future economic activity due to a strengthening in domestic demand within the industrial and service sectors. In contrast, business sentiment in both the construction and trade sectors declined over the previous month, amid a less optimistic assessment about the current economic situation.
Author: Ricardo Aceves, Senior Economist