As 2024 draws to a close, Czech citizens are showing decreased confidence in their domestic economy, according to the latest data from the Czech Statistical Office. The composite confidence indicator has declined by 0.5 points to 97.5 points compared to November, reflecting a more cautious outlook from both businesses and consumers.
The business confidence indicator dropped by 0.4 points to 96.9, while consumer confidence saw a more significant decrease of 1.2 points, settling at 100.4. This decline in business sentiment is primarily attributed to reduced industrial demand, which has led to lower expectations for production growth in the coming quarter.
Anastasija Neradová from the Czech Statistical Office’s business cycle surveys department explains that December’s consumer survey reveals a partial correction of the confidence growth observed over the previous three months. The shift is mainly due to increased concerns about the overall economic situation and a growing number of households not planning significant purchases in 2025.
While slightly fewer households report a deterioration in their financial situation compared to the past twelve months, there’s a notable increase in consumers who believe the current timing is unfavorable for major purchases.