Czech Republic: Economic sentiment falls for third consecutive month
March 24, 2011
In March, the economic sentiment index, published by the National Statistics Office, fell to 92.6 points from 94.2 points in February. The decline represented the third consecutive month of deteriorating economic sentiment. While the index remains 5.6 points above the level observed in the same month last year, it continues to sit below the 100-point threshold that separates optimistic from pessimistic sentiment. The monthly fall reflected deteriorations in both components of the index (consumer and business confidence), particularly consumer sentiment, which fell 7.7 points, the sharpest decline since October 2008. Consumer confidence dropped on the back of consumers' pessimistic assessment about future economic prospects for the year ahead, as well as a less optimistic assessment about their own financial situation. Business confidence also dropped, mainly as result of expectations of weaker conditions in the trade and industrial sectors.
Author: Ricardo Aceves, Senior Economist