Czech Republic: Confidence in the Czech economy hits multi-year high at the outset of 2016
January 25, 2016
The economic sentiment indicator published by the Czech Statistics Office (CSO) jumped from December’s 96.5 points to 98.4 points in January, reaching the highest reading since June 2008. January’s increase was driven by both rising consumer and business sentiment. Nevertheless, the index remained below its 110-point long-term average.
Business sentiment rose from December’s 94.3 points to 96.0 points in January. Sentiment rose across all sectors, with industry, construction and services recording gains larger than 2.0 percentage points. Sentiment in the services sector also improved, albeit to a lesser extent.
Consumer confidence hit another record high, climbing from December’s 117.4 to 111.0 in January. The improvement mainly reflected consumers’ fading pessimism regarding the general economic outlook. In addition, consumers were less pessimistic about the unemployment outlook. Meanwhile, households’ assessment of their own financial situation was broadly stable, their willingness to save increased slightly and their assessment of price developments was somewhat more pessimistic.