Czech Republic: Economic sentiment rises to two-year high in November
November 24, 2010
The economic sentiment index rose by 1.1 points over October, pushing the index to 92.7 points in November. The November reading marked the first increase in the index, after two consecutive moths of declining economic sentiment and represented the second highest level so far this year. On a yearly basis, the index is 10.1 points above the level observed in the same month last year. The increase in economic sentiment reflected improvements in consumer confidence (+2.2 points) and business confidence (+0.9 points). The improvement in consumer confidence was the result of consumer's less pessimistic assessment about the overall economic situation over the next twelve months, as well as a more optimistic assessment of their individual financial position. Moreover, less consumers expect unemployment to rise. Business confidence also improved, as domestic demand strengthened in the industrial and trade sectors leading to increased optimism regarding future business prospects over the next three months. In contrast, business confidence in both the construction and services sector, dropped over the previous month.
Author: Ricardo Aceves, Senior Economist