Czech Republic: Economic sentiment falls to 18-month low in August
August 24, 2011
In August, the economic sentiment indicator, published by the National Statistics Office, fell to 89.6 points from 90.8 points in July, registering the lowest level of economic sentiment since March 2010. The index now sits 2.9 points below the level observed in the same month last year. The August decline was broad-based, as both sub-components of business and consumer sentiment deteriorated over the previous month. The drop in business confidence reflected firms' more negative assessment about their current business situation along with less upbeat expectations for future favourable business conditions, particularly in the industrial and services sectors. Consumer confidence also dropped over the previous month, as consumers were markedly gloomier about the overall economic situation and about their own financial situation. In addition, the August survey saw more respondents expecting an increase in unemployment.
Author: Ricardo Aceves, Senior Economist