Czech Republic: Confidence in the Czech economy strengthens in December
December 28, 2015
The economic sentiment indicator published by the Czech Statistics Office (CSO) improved from November’s 96.0 points to 96.5 points in December, which marked a six-month high. December’s modest increase was mainly driven by the fact that consumers grew more confident and, to a lesser extent, by rising business confidence. Nevertheless, the index remained below its 110-point long-term average.
Business sentiment rose only marginally from November’s 94.2 points to 94.3 points in December. The nearly-stable reading reflects that lower sentiment in the construction and in the trade sectors almost offset rising confidence in the services sector whereas sentiment among industrial enterprises was unchanged.
Consumer confidence hit a record high, increasing from November’s 115.3 to 117.4 in December. The improvement reflected consumers’ fading pessimism regarding the general economic outlook and unemployment as well as rising optimism regarding their own financial situation. Meanwhile, households’ willingness to save and their assessment of price developments were broadly stable.