Consumer confidence in the Czech economy has hit its lowest point in a year, according to the latest Czech Statistical Office survey. The confidence index settled at 96.6% of the long-term average spanning from 2003 to 2024, reflecting a growing unease among households about the country’s economic trajectory.
Jaromír Gec, an economist at Komerční banka, warns that this surge in consumer pessimism could spell trouble for the Czech economy, particularly since consumer spending is expected to drive economic recovery. The data reveals an increasing number of citizens who anticipate a deterioration in general economic conditions over the next twelve months.
What makes this pessimism particularly intriguing is its persistence despite several positive economic indicators. As Vít Hradil from Cyrrus points out, even with robust wage growth, low unemployment rates, and relatively tame inflation, Czech consumers remain cautious. Their concerns appear to stem from external factors, including Germany’s economic struggles, potential US trade conflicts, and the ongoing situation in Ukraine.
The business sector, however, paints a more optimistic picture. Confidence indicators have improved across industries, with particularly strong showings in services and trade. Yet, Petr Dufek, chief economist at Creditas bank, tempers this optimism by noting that without substantial new orders, especially in the industrial sector, this positive outlook might be merely wishful thinking.