Czech Republic: Economic sentiment jumps to highest level in almost three years
January 24, 2014
The economic sentiment indicator developed by the Czech Statistical Office (CSO) inched up to 91.3 points in January, which was up from the 91.2 points recorded in December. The indicator, which now is at its highest point since April 2011, primarily reflects an improvement in consumer confidence.
Consumer confidence jumped to the highest level in over five years in January. According to the CSO, consumers were more optimistic regarding the country's overall economic situation for the next 12 months and their future financial situations in the year ahead. In addition, households' views of the future conditions in the labor market improved over the previous month. Forecasters surveyed by FocusEconomics expect private consumption to expand 0.9% in 2014, which is down 0.2 percentage points from last month's projection. For 2015, the panel sees private consumption growing 1.7%.
Conversely, confidence among businesses waned somewhat in January, reflecting lower business confidence in industry, trade, as well as in selected services. Conversely, business sentiment improved in construction. FocusEconomics panelists see fixed investment increasing 1.8% in 2014, which is down 0.4 percentage points from last month's projection. For 2015, panelists expect investment to expand 3.6%.
Author: Ricardo Aceves, Senior Economist