Confidence in the Czech economy has started to grow again after falling for four months and the composite confidence indicator rose by 0.2 points month-on- month in August, the Czech Statistical Office (CSU) said today.
Among entrepreneurs confidence increased only in selected services. Confidence in the construction sector did not change and confidence in industry and in trade decreased. Consumer confidence indicator increased in August month-on- month, but it is still lower year-on-year.
The survey conducted among consumers in August indicates that consumers are for the next twelve months more afraid of a decrease in the overall economic situation. Concerns about their own financial standing and about an increase in unemployment almost unchanged, although they are still high.
The share of respondents intending to save money increased. "Considering the growing recession in economic activity in the euro zone with negative impacts on the domestic economy, we expect that the composite confidence indicator is more likely to drop further by the end of this year," Miroslav Novak, an analyst at company Akcenta, said.
Attention is now being focused above all on the development in industry, Novak said. In industry, the assessment of current overall economic situation decreased slightly in August. The assessment of current total and foreign demand decreased, too. According to respondents, stocks of finished goods decreased. For the next three months, companies expect no changes in the development of production activity and an increase in employment. Expectations of general economic situation development for the next three as well as six months are lower than in July.
Overall, confidence in industry decreased compared with July, and it is still lower year-on-year. In the construction segment, the assessment of current economic situation increased slightly month-on-month in August.
The assessment of total demand increased, too, compared with July. Respondents expect no changes in the development of construction activity and employment. Expectations of the economic situation development for the next three months are lower and for the next six months they are almost unchanged. Overall, confidence in construction did not change month- on-month in August and it is still lower compared with August 2011. In trade, the assessment of current economic situation decreased compared with July. The stocks decreased slightly, too. Expectations of the economic situation development for the next three as well as six months are higher compared with July.
Overall, confidence in trade decreased month-on-month in August and it is still lower year-on-year, too. In selected services, the assessment of current economic situation increased in August compared with July. The assessment of demand increased slightly and expectations about demand for the next three months did not change. For the next three as well as six months, expectations of total economic situation development are lower compared with July. Overall, confidence in selected services increased month- on-month, but it is still lower year-on-year.