Czech Economic Sentiment Continues To Improve

Confidence in the Czech economy rose again in June, by 4.3 points month-on-month to 104 points. At the same time, consumer and business confidence increased for the third time in a row. For consumers, it increased by 2.7 points to 105.5 and among entrepreneurs by 4.6 points to 103.7 points, the Czech Statistical Office stated on its website today. In the business environment, confidence has increased in all sectors. Compared to last June, all values are significantly higher.

In industry, confidence increased by 4.6 points compared to May to 108.2 points. “The value of the confidence indicator in the industry is even the highest since February 2011,” said Jiří Obst, head of the CZSO business cycle surveys department. According to statistics, there was a month-on-month increase in industrial enterprises, which assess their current total demand as more than satisfactory, and entrepreneurs, who expect growth in the pace of production in the next three months. However, stocks of finished products decreased.

Anastasija Nejasova from the Business Cycle Survey Department stated that industrial companies evaluate their economic situation very well throughout the second quarter of this year. “In addition, the number of companies recording a recovery in demand increased in June compared to previous months, which also significantly contributed to higher expectations of the growth rate of production activity in the summer months,” she added.

Confidence among construction companies has increased by 0.6 points to 115.8 points since May. However, there has been a slight increase in companies that consider their current demand for construction work to be insufficient.

Confidence of entrepreneurs in trade rose by 5.4 points to 104.7 and among entrepreneurs in selected service sectors, including the banking sector, was higher by 4.9 points month-on-month in June and amounted to 97.6 points.

Among consumers, the confidence indicator rose by 2.7 points to 105.5 points since May. The share of respondents who expect a deterioration in the overall economic situation and their financial situation for the next 12 months has not changed, however, their fears of rising unemployment have fallen for the third time in a row. On the contrary, in June there was again a significant increase in those who fear an increase in prices, to a level approaching the maximum from last May, the statistics said. They added that at the same time there was a slight increase in those who expect to save some money in the coming months.