Consumer confidence in the Czech economy reached its lowest level in a year in February, according to a survey by the Czech Statistical Office.
The confidence index stood at 96.6% of the long-term average for the period from 2003 to 2024. Economists believe this indicates that households do not expect improvements for now. At the same time, entrepreneurs show a more positive outlook.
The increase in pessimism among consumers is a worrying signal for the Czech economy, especially considering that consumption should be the main factor driving the recovery of economic growth, said Jaromír Gec, economist at Komerční banka.
According to him, the data show that the number of people fearing a deterioration in the economic situation over the next 12 months is growing.
The economist added that instead of facing objective difficulties, households are anxious about potential negative scenarios in the future.
Among businesses, confidence improved compared to January in the industrial and construction sectors, while a generally positive outlook is mainly observed in the services and retail sectors.
