Czech Republic: Economic sentiment virtually unchanged in February
February 24, 2014
The economic sentiment indicator published by the Czech Statistical Office (CSO) inched down from 91.3 points in January to 91.2 points in February. The subdued reading primarily reflects that a deterioration in consumer confidence offset an improvement in business confidence.
Consumer confidence fell in February after having reached the highest level in over five years in January. According to the CSO, consumers were less optimistic regarding the country's overall economic situation for the next 12 months as well as regarding their future financial situations. In addition, consumers' views on the future conditions in the labor market deteriorated over the previous month. FocusEconomics panelists expect private consumption to expand 0.8% in 2014, which is down 0.1 percentage points from last month's projection. For 2015, the panel sees private consumption growing 1.6%.
Confidence among businesses improved slightly in February, reflecting higher business confidence in industry, construction and trade. Conversely, business sentiment waned in selected services. FocusEconomics panelists see fixed investment increasing 1.4% in 2014, which is down 0.4 percentage points from last month's projection. For 2015, panelists expect investment to expand 3.2%.
Author: Ricardo Aceves, Senior Economist