Czech Economy Sees a Boost in Confidence in April

The confidence in the Czech economy increased again in April, according to data published by the Czech Statistical Office (ČSÚ) on Monday. The overall confidence index rose by 3.3 points month-on-month to reach 97.2 points. The confidence of both entrepreneurs and consumers also increased during the period.

The index measuring entrepreneurs’ trust in the economy rose in all sectors, most notably in industry. However, the overall confidence level remains lower than last year, with a rating of 100.3 in April 2022.

Jiří Obst, head of the ČSÚ department of cyclical surveys, commented that the monthly entrepreneur trust index had risen by 2.8 points to reach 98.0. “Overall, entrepreneur trust in the economy has increased for the second time in a row and is approaching its long-term average,” he said. He added that despite the improving sentiment among entrepreneurs, many are still limited by inadequate demand, limited availability of specific inputs, and, in some sectors, a shortage of qualified employees.

Obst identified several other obstacles to growth, including legislation, a highly competitive environment, and general uncertainty caused by the current geopolitical situation. The consumer confidence index also rose by 5.8 points to 92.9, according to the ČSÚ. Compared to March, households are less concerned about the worsening overall economic situation and rate their financial situation slightly better than they did in the previous 12 months.

Moreover, the number of consumers anticipating a worsening in the next 12 months has decreased. The percentage of respondents who believe it is not a suitable time for significant purchases has slightly reduced.

“April data, which show that consumer confidence is at its highest level since October 2021, confirm an improving consumer sentiment. However, even relatively favorable current data have not changed the fact that overall consumer confidence is still significantly below its long-term average,” said the ČSÚ.

The rise in confidence in the Czech economy in April is a positive sign for the country’s economic recovery after a challenging period caused by the COVID-19 pandemic. Although some obstacles to growth remain, the increasing confidence among entrepreneurs and consumers suggests that the economy is moving in the right direction.