Czech Republic: Economic sentiment falls in July
July 25, 2011
In July, the economic sentiment indicator, published by the National Statistics Office, dropped to 90.8 points from 91.2 points in June, marking the lowest level of economic sentiment since May 2010. The index sits 2.4 points below the same level registered in the same month last year. The monthly fall was the result of a decline in the sub-index of business confidence, which was partially offset by an improvement in the consumer confidence sub-component. The drop in business sentiment reflected weaker business prospects in the industrial and the services sectors, as well as in trade. In contrast, consumer confidence improved over the previous month, reversing two consecutive months of decline. The improvement in consumer sentiment reflected consumers' improved assessment regarding future economic prospects for the next 12 months, as well as their own financial situation. In addition, the July survey saw less respondents expecting an increase in unemployment.
Author: Ricardo Aceves, Senior Economist