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December 28, 2017 8:00 am | FILED UNDER: business

Confidence in Economy Grows According to CSU Report

By Matt Atlas

Prague, Dec 27 (CTK) – Confidence in the Czech economy rose by 0.6 points month on month to 99.6 points in December after a drop in November, the Czech Statistical Office (CSU) said today.

 

While business confidence grew by 0.8 points to 97.5 points month on month, consumer confidence fell by 0.3 points to 110 points.

 

In comparison with December 2016, the overall confidence is 0.5 point higher.

 

Komercni banka analyst Marek Drimal pointed to the fact that confidence in the economy is currently the highest since 2008. The statistics have confirmed that the Czech economy continued to be successful in the last quarter of the year, he said.

 

“The beginning of 2018 is expected to be successful as well. GDP growth should reach 4.5 percent this year and 3.6 percent next year,” Drimal said.

 

In terms of individual sectors, confidence in the domestic economy grew in month-on-month terms in industry, construction and services, while in trade it dropped by 1.3 points to 100.5 points.

 

“The assessment of current overall economic situation of the respondents almost unchanged month on month. The stocks did not change. Expectations of the economic situation development for the next three as well as six months decreased, compared to November,” the CSU said.

 

The survey taken among consumers indicates that for the next twelve months consumers are slightly more afraid of deterioration of the overall economic situation. Worries about their financial standing did not change. The share of respondents intending to save money remained almost unchanged as well.

 

In comparison with the previous month, consumers’ worries about a price hike and an increase in unemployment are almost unchanged.

 

Confidence indicator – basic indices (2005 average = 100):

 

indicator

December 2016

November 2017

December 2017

business total

97.1

96.7

97.5

industry

98.7

97.5

98.7

construction

75.0

87.4

89.4

trade

100.1

101.8

100.5

services

97.7

96.3

96.7

consumers

108.7

110.3

110.0

composite indicator

99.1

99.0

99.6

 

Source: CSU

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