Czech Republic: Economic sentiment falls for fifth consecutive month
May 24, 2011
In May, the economic sentiment indicator, published by the National Statistics Institute, inched down to 91.2 points from 91.6 points in April. The fall represented the fifth straight month of declining economic sentiment. A year-on-year comparison has the index just 0.6 points above the level observed in the same month the previous year. The disappointing result was mainly the result of a decline in the sub-index of consumer confidence, as greater scepticism was reported regarding future economic prospects for the year ahead, together with a less positive assessment concerning their own financial position, due to the upcoming planned austerity measures, which are likely to dent domestic demand going forward. In addition, the number of consumers expecting unemployment to increase rose slightly compared to the previous month. In contrast, business confidence improved marginally over the previous month, as the services sector showed a brighter assessment of their current business conditions as well as a better economic situation in the months to come.
Author: Ricardo Aceves, Senior Economist