Consumer Confidence In Czech Economy Falls To Lowest Level On Record
The Czech Statistical Office (CZSO) has reported that consumer confidence has been falling for the last five months, and in the first month of the holiday season fell to the lowest level since records began. Photo credit: Freepik
Czech Republic, July 26 (BD) – The aggregate confidence indicator (economic sentiment indicator) fell by 2.6 points month-on-month to 95.7, with a simultaneous decline in both of its components, according to the latest report from the Czech Statistical Office (CZSO). The business confidence indicator fell by 2.9 points to 100.2, while the consumer confidence indicator fell by 1.1 points to 73.6, the lowest since the survey began.
In the business sector, confidence declined in July in industry and trade, while rising slightly month-on-month in construction and related services.
“The significant decline in confidence in industry is due, among other things, to persistent input shortages and falling demand. Moreover, businesses are still limited by a lack of qualified employees,” said Jiří Obst, head of the CZSO’s economic surveys department.
Consumer confidence in the economy fell to its lowest level since the survey began. A record number of respondents are worried about the deterioration of their own financial situation. The number of consumers who rate their financial situation worse than in the previous twelve months is also close to its historical high.
“Pessimism among households is growing for the fifth month in a row. Consumers’ confidence in the economy even reached its lowest level in the survey’s history in July. Consumers believe that their current financial situation, as well as the overall economic situation in the Czech Republic is worsening, and that this negative trend will continue in the coming months,” said Anastasija Nejasova from the CZSO’s economic surveys department.