Vladimír Urbánek (Kurzy.cz)
Macroeconomics  |  August 24, 2012 09:28:14

Czech Republic - The decline of confidence in the economy has stopped after four months


Overall confidence in the domestic economy increased slightly in August. The composite confidence indicator (economic sentiment indicator), compared to July increased by 0.2 point. Among entrepreneurs, confidence in the economy rose in services, construction remained constant and industry and trade declined. Consumer confidence increased mom. Compared with values ??in August 2011 as a comprehensive indicator of confidence and business confidence indicator for consumer confidence lower.

In industry In August, the assessment of current overall economic situation is slightly decreased. Assessment of total and foreign demand decreased as well. Inventories of finished goods respondents decreased. Respondents expect for the next three months no changes in production activity and increasing employment.Expectations of the economic situation for the next three and six months are lower than in July. Overall, the confidence in the industry compared to the previous month decreased, compared to those of August 2011 is also lower.

In construction , the assessment of the current economic situation improved slightly in August. Assessment of the demand compared to July increased slightly as well. Respondents expect no changes in construction activity and employment. Expectations of the economic situation for the next three months fell, for the next six months remained almost unchanged. Overall, confidence in construction in August compared to the previous month did not change and remains lower than in August 2011.

In tradeassessment of the current economic situation compared to July decreased. Stocks fell slightly as well. Expectations of the economic situation for the next three and six months are higher compared to the previous month. Overall confidence in August in trade decreased, and even annual comparison is still lower.

In selected services in August assessment of the current economic situation compared to July increased. Guest August demand increased slightly, her expectations for the next three months are immutable. Expectations of the general economic situation for the next three and six months are lower. Overall, confidence in selected services increased month on month, year on year but is still lower.

The consumer confidence indicatorIn August, mom, mom, and increased still lower. The survey among consumers in August indicates that for the next twelve months increased consumer concerns about the deterioration of the overall economic situation. Fears of a worsening of their own financial situation and the increase in unemployment almost unchanged, although they are still high. Intention to save money increased.

Source: CSO

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