Overall confidence in the Czech economy increased in March, the highest in almost three years

The aggregate confidence indicator (economic sentiment indicator), expressed as a basic index, increased by 1.7 points month-on-month to 99.5, with both components of the index showing the same trend. The business confidence indicator increased by 1.6 points to 99.6 and the consumer confidence indicator rose by 2.2 points to 98.8 compared with February. Confidence in the country's economy rose among businesses and consumers in March. It is now at its highest among entrepreneurs since July 2022.

Business confidence in the economy increased in March across all sectors. Compared with February, it increased the most in trade (+2.3 points), followed by selected services (+1.8 points), industry (+1.3 points) and construction (+1.1 points).

"Business confidence rose for the third month in a row, bringing it closer to its long-term average. Of all the assessed questions entering the aggregate business confidence indicator, higher expected demand in selected service sectors contributed most significantly to the March increase," He told Jiří Obst, head of the CSO's economic surveys department.

Trust Consumer increased compared to last month. The confidence indicator rose by 2.2 points to 98.8 in March. The proportion of consumers expecting a deterioration over the next twelve months the overall economic situation in the Czech Republic decreased month-on-month, but remains relatively high. The share of households expecting the deterioration of your financial situation in the next 12 months decreased slightly compared to February. The number of households that evaluates his the current financial situation worse than in the previous twelve months, remained the same as in February. The number of respondents who do not plan to make any purchases in the next twelve months big purchases, has decreased slightly.

"Consumer confidence in the economy has increased after a three-month decline, mainly due to a moderation in consumers' otherwise still significantly negative expectations of the economic situation in the Czech Republic over the next twelve months," She told Anastasija Neradova from the CSO's economic surveys department.

For more detailed information on business and consumer confidence, see additional information on RI conjoint surveys.

CSO/ gnews.cz - RoZ