ČSOB Index: The mood of companies and entrepreneurs in the Czech Republic has significantly improved

by   CIJ News iDesk III
2021-04-28   10:53
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The mood of companies and entrepreneurs in the Czech Republic has significantly improved. Demand for goods and services is now much higher than in the autumn, and more and more companies are not afraid to further expand their business and invest. On the other hand, due to the protracted pandemic and persistent restrictions for a number of industries, satisfaction with the overall development of the Czech economy fell to a minimum. This follows from the current ČSOB Index of Business Expectations Survey, the results of which the bank published today at an online press conference.

"The results show that most companies and entrepreneurs have perhaps gotten the worst. The mood is remarkable, although still not entirely positive. A third of companies expect demand to grow in the second quarter and a quarter expect investment to increase this year. especially the medium-sized ones, they are already starting to prosper similarly to before the pandemic, "said Pavel Prokop, ČSOB's Executive Director of Corporate Banking.

The index of expectations of companies improved by a significant 21.5 points compared to the autumn to the final minus 17.9 points. "The shift of the index to less negative values ​​is not surprising. For a number of reasons, among which I would like to highlight the ongoing vaccination, the end of currently the biggest scarecrow of companies - coronavirus pandemics - finally seems to be in sight," said ČSOB chief economist Martin Kupka.

Developments in the Czech economy remain below expectations, with which only 22 percent of companies and entrepreneurs expressed satisfaction. In addition to the pandemic, respondents rank economic development among the biggest risks. Perceptions vary greatly from field to field. While in construction or administration the satisfaction exceeds one third of the level, in the case of accommodation and catering services or for operators of culture, entertainment or recreation it is only in percentage units.

Slovakia also reports a better mood, yet the Slovak Index of Business Expectations, despite a strong quarter-on-quarter improvement, remained in the negative field at 22.1 points. As in the Czech Republic, the mood is determined mainly by the pandemic and the state of the economy, with which only 18 percent of respondents are satisfied.

The Business Expectations Index is a ČSOB project, which can be used to monitor the development of small and medium-sized companies and entrepreneurs in the areas of demand, investment and the scope of business in the Czech Republic and Slovakia. The basis of the project is a survey by the Datank agency, which was attended by over 400 respondents from various fields throughout the Czech Republic from March to April. The index of expectations of companies can take values ​​from plus 100 to minus 100 points. The plus field means prevailing optimism, while a negative value means pessimism.

Source: CTK and CSOB