In a positive turn for the Czech economy, confidence levels rose to a six-month high this May, as the overall economic sentiment indicator increased by 4.3 points to 101. The Czech Statistical Office (ČSÚ) reported notable improvements across both business and consumer sectors, marking a recovery from April’s decline.

The business sector saw particularly strong gains, with overall confidence up by 4.5 points to 101. The service sector led this growth, posting a significant 6.6-point increase to 106.9, while industrial confidence rose by 3.9 points to 94.2. Key factors behind the upturn included rising demand expectations in the financial sector and anticipated growth in manufacturing.

Not all areas shared in the optimism, however. Confidence in the construction and retail sectors declined slightly, falling by 1.7 and 1.8 points respectively.

Consumer confidence also showed encouraging signs, increasing by three points to 100.7. Households reported fewer concerns about both the national economic outlook and their personal financial situations.

Year-on-year comparisons reveal a mixed picture: overall economic confidence is up by 4.4 points, and business sentiment has improved by 5.4 points. However, consumer confidence has declined slightly, falling by 0.9 points compared to May 2023.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo