Czech Business Cycle Survey - March 2025: Overall confidence in the economy increased

Economic sentiment in the Czech Republic improved in March 2025, as indicated by the composite confidence indicator, which rose by 1.7 points to 99.5 month-on-month. This growth reflects similar positive developments in both its key components. The business confidence indicator increased by 1.6 points to 99.6, while consumer confidence climbed by 2.2 points to 98.8. In a year-on-year comparison, both the composite and business indicators are at higher levels than in March 2024.

Business confidence saw a rise across all monitored sectors. Compared to February, the most significant improvement was recorded in trade, which rose by 2.3 points. This was followed by selected services with an increase of 1.8 points, industry with a 1.3-point gain, and construction with a 1.1-point rise.

Consumer confidence also strengthened in March. The indicator reached 98.8, up by 2.2 points from the previous month. There was a noticeable decline in the proportion of consumers expecting the overall economic situation in the Czech Republic to worsen over the next twelve months, although this figure still remains relatively high. Meanwhile, fewer households expect their financial situation to deteriorate in the coming year, compared to February. The assessment of current household finances remained unchanged from the previous month. There was also a slight decrease in the number of consumers who believe that now is not a good time for large purchases.

Source: CSO