Czech Republic: Economic sentiment rises in February
February 25, 2013
The February economic sentiment indicator published by the Czech Statistical Office rose to 84.2 points from 82.8 points in January. Despite the improvement, the index is 3.7 points below the level observed in the same month last year.
The monthly increase reflected an improvement in both business and consumer confidence. After a sharp drop in January, the consumer confidence sub-indicator improved markedly in February, as consumers reported less pessimism about the general economic situation in the next 12 months as well as about their own financial situation. Meanwhile, consumers' assessment regarding the unemployment situation remained unchanged compared to the previous month.
FocusEconomics Consensus Forecast participants anticipate private consumption to record zero growth in 2013, which is down 0.1 percentage points from last month's projection. For 2014, the panel sees private consumption growing 1.5%.
In the same vein, the business confidence sub-gauge also climbed in February, mainly reflecting rising business confidence in the industrial sector. Confidence in the construction sector as well as in trade fell slightly compared to the previous month.
Consensus Forecast participants anticipate fixed investment to grow 0.2% this year, which is down 0.2 percentage points from last month's projection. For 2014, panellists expect investment to expand 2.7%.
Author: Ricardo Aceves, Senior Economist