Confidence in Czech Republic slips again in January

Czech household confidence fell again in January due to renewed economic restrictions.

Confidence among households is now only slightly above the lowest level seen in April or October last year. In comparison to December, households are more concerned about the deteriorating economic situation and rising unemployment. The intention to save has decreased too, as fears around rising prices have increased again despite slowing inflation.

Business confidence fell too in January in all monitored segments (industry, services, constructions, retail trade), but most significantly in retail, where economic restrictions have been significant. However, even in retail, confidence is still higher than it was during the first wave of the pandemic.

Entrepreneurs expect a significant improvement in retail trade and services in the next three months. Confidence also declined slightly in construction in December.

In industry, however, the decline was modest and is now close to pre-pandemic levels in recent months. From this perspective, industry is keeping business sector confidence at a relatively solid level, although in all other segments confidence is below its one-year average.