Confidence in Czech Economy Edges Higher in September

Overall confidence in the Czech economy rose slightly in September, according to the Czech Statistical Office. The composite confidence indicator increased by 0.8 points month-on-month to 101.9, with both business and consumer sentiment contributing to the improvement. Compared to a year earlier, all major indicators were at higher levels.

Business confidence grew modestly, up 0.1 points to 101.6, while consumer confidence posted a stronger rise, climbing 4.5 points to 103.5.

In the industrial sector, confidence improved by 2.0 points to 95.5. Companies expressed more optimism about production activity in the coming three months, although assessments of current demand remained unchanged. Inventories were stable, and slightly more firms expected to raise prices.

The construction sector showed notable strength, with confidence rising 3.0 points to 125.4. Fewer firms reported weak demand, while more anticipated hiring staff and raising prices. Compared with last year, confidence in construction remained significantly higher.

Trade sector sentiment also advanced, up 1.2 points to 99.6. Entrepreneurs reported weaker improvements in their recent business situation but expressed slightly greater optimism for the months ahead. Warehouse inventories declined, while price expectations remained steady.

By contrast, selected service sectors—including finance—saw a drop in confidence. The indicator fell 2.3 points to 105.6, as fewer entrepreneurs rated their current situation and demand positively. Expectations for demand also weakened slightly.

On the consumer side, optimism improved markedly. The confidence indicator rose to 103.5 as fewer households expected the national economy or their own financial situation to worsen over the next year. More households reported better conditions than a year ago, though plans for major purchases remained unchanged. Fears of unemployment and rising prices also eased slightly.

The survey highlights a mixed picture: while households and most business sectors showed growing optimism, services registered a decline. Still, overall sentiment remained stronger than in September 2024.