Czech Republic: Economic sentiment remains stable in June
June 24, 2011
In June, the economic sentiment indicator, published by the National Statistics Office, remained unchanged at May's 91.2 points. The reading marked the first halt to five consecutive months of falling sentiment. A year-on-year analysis has the index just 0.1 points above the level observed in the same month last year. The subdued reading was mainly the result of a decline in the sub-index of consumer confidence, which was offset by an increase in the business confidence sub-component. The drop in consumer sentiment mainly reflected consumers' increasing concerns regarding future economic prospects for the next 12 months, together with a higher number of respondents to this month's survey expecting unemployment to increase. In contrast, business confidence improved over the previous month, as both the services and trade sectors experienced a brighter assessment of their future economic prospects.
Author: Ricardo Aceves, Senior Economist