Business cycle survey - April 2011
Confidence in economy decreased further
Overall confidence in domestic economy decreased again m-o-m in April. The composite confidence indicator (economic sentiment indicator) decreased slightly for the fourth time in a row after two-year almost continual growth, namely by 1.2 point. Its decrease was caused by a slight decrease in entrepreneurs’ confidence and a low level of confidence of consumers. Confidence of entrepreneurs decreased by 1.7 point m-o-m; confidence of consumers increased slightly (by 1 point) after previous marked drop. Compared to April 2010, the composite confidence indicator is 1.3 point up.
* * *
Business confidence indicator decreased by 1.7 point in April. Among entrepreneurs, confidence decreased the most in selected services; confidence in industry for the second time in a row. In construction and in trade confidence increased slightly. Compared to April 2010, the confidence of entrepreneurs is 4.6 points up. After gradual growth during the whole 2010, business confidence has been decreasing this year, namely due to more cautious expectations.
In industry, the assessment of current overall economic situation hardly changed. Positive assessment was caused namely by the rise in foreign demand; assessment of total demand decreased. According to respondents, stocks decreased. Production capacity utilization in manufacturing industry increased in April and reached 84.3%; respondents estimate they have work secured by contracts for 7.3 months, which is slightly more than in the previous quarter. Most important barrier of production still is insufficient demand, even though compared to previous quarter it is stated by less respondents (35.7%). For next three months, respondents expect a slight decrease in production activity growth and a slight decrease in employment. Expectations of general economic situation development for the next three as well as six months are also lower than in March. All in all the confidence in industry decreased by 1.6 point; compared to April 2010 it is however 6.7 points up.
The survey on investment activity taken among industrial enterprises suggests that after previous stagnation the level of investment should increase in 2011; by 7%. It refers predominantly to a renewal of production equipment and less to an extension of production capacities and introducing new technologies.
In construction, the assessment of current economic situation decreased m-o-m in April. Low assessment of total demand did not change. For the period of the next three months respondents expect an increase in construction activity and in employment, compared to March. Respondents estimate that they have work secured by contracts for 7.6 months ahead. Expectations of the economic situation development for the next three as well as six months are lower than in March. Overall, the confidence in construction increased by 2 points, but it is 5.5 points down, y-o-y.
In trade, the assessment of current economic situation in April hardly changed, compared to March. According to respondents, in April, the finished goods stocks increased. Expectations of the economic situation development for the period of the next three as well as six months are higher than in March. The confidence in trade increased by 2.6 points, m-o-m; it is 5.6 points up y-o-y.
In selected services, according to respondents, the assessment of current economic situation decreased slightly compared to March. The assessment of demand decreased; its expectations for the next three months are the same. For the period of the next three months expectations of total economic situation development are lower than in March, for next six months they are the same. Most important barrier of production still is insufficient demand (it was stated by 32.5% of respondents). Overall, the confidence in selected services decreased by 3.3 points, m-o-m, after previous rise and it is 3.4 points up y-o-y.
Consumer confidence indicator increased slightly (by 1 point) compared to March after a marked drop; it is 12.2 points down compared to April 2010. The survey taken among consumers in April indicates that consumers are for the next twelve months afraid of a decrease in the overall economic situation as well as in their own financial standing, even though less than in March. The share of respondents expecting rises in unemployment increased slightly in April. Percentage of respondents planning to save money decreased slightly. Also the expectations of rise in prices in next twelve months remained relatively high in April.
Note
Responsible manager: Juraj Lojka, director
Contact person: Marie Hörmannová, tel. +420274052049, e-mail: marie.hormannova@czso.cz
Data source: CZSO business survey, GfK Praha consumer survey
Business and Consumers Surveys are co-financed by grant agreements
of the European Commission DG ECFIN
End of data collection: 18 April 2011
Related publication: 1201-10 Business Cycle Survey in Enterprises of Industry, Construction,
Trade and Selected Services
Next News Release: 24 May 2011
Not edited for language
Seasonally adjusted confidence indicators
International comparison (March 2011)
Note: Long term average is usually calculated over the period from 1990, if harmonised data are available (for the Czech Republic, it is an average since 1993).
- year 2024 | April 2024 | March 2024 | February 2024 | January 2024
- year 2023 | December 2023 | November 2023 | October 2023 | September 2023 | August 2023 | July 2023 | June 2023 | May 2023 | April 2023 | March 2023 | February 2023 | January 2023
- year 2022 | December 2022 | November 2022 | October 2022 | September 2022 | August 2022 | July 2022 | June 2022 | May 2022 | April 2022 | March 2022 | February 2022 | January 2022
- year 2021 | December 2021 | November 2021 | October 2021 | September 2021 | August 2021 | July 2021 | June 2021 | May 2021 | April 2021 | March 2021 | February 2021 | January 2021
- year 2020 | December 2020 | November 2020 | October 2020 | September 2020 | August 2020 | July 2020 | June 2020 | May 2020 | April 2020 | March 2020 | February 2020 | January 2020
- year 2019 | December 2019 | November 2019 | October 2019 | September 2019 | August 2019 | July 2019 | June 2019 | May 2019 | April 2019 | March 2019 | February 2019 | January 2019
- year 2018 | December 2018 | November 2018 | October 2018 | September 2018 | August 2018 | July 2018 | June 2018 | May 2018 | April 2018 | March 2018 | February 2018 | January 2018
- year 2017 | December 2017 | November 2017 | October 2017 | September 2017 | August 2017 | July 2017 | June 2017 | May 2017 | April 2017 | March 2017 | February 2017 | January 2017
- year 2016 | December 2016 | November 2016 | October 2016 | September 2016 | August 2016 | July 2016 | June 2016 | May 2016 | April 2016 | March 2016 | February 2016 | January 2016
- year 2015 | December 2015 | November 2015 | October 2015 | September 2015 | August 2015 | July 2015 | June 2015 | May 2015 | April 2015 | March 2015 | February 2015 | January 2015
- year 2014 | December 2014 | November 2014 | October 2014 | September 2014 | August 2014 | July 2014 | June 2014 | May 2014 | April 2014 | March 2014 | February 2014 | January 2014
- year 2013 | December 2013 | November 2013 | October 2013 | September 2013 | August 2013 | July 2013 | June 2013 | May 2013 | April 2013 | March 2013 | February 2013 | January 2013
- year 2012 | December 2012 | November 2012 | October 2012 | September 2012 | August 2012 | July 2012 | June 2012 | May 2012 | April 2012 | March 2012 | February 2012 | January 2012
- year 2011 | December 2011 | November 2011 | October 2011 | September 2011 | August 2011 | July 2011 | June 2011 | May 2011 | April 2011 | March 2011 | February 2011 | January 2011
- year 2010 | December 2010 | November 2010 | October 2010 | September 2010 | August 2010 | July 2010 | June 2010 | May 2010 | April 2010 | March 2010 | February 2010 | January 2010
Published: 26.04.2011
The data are valid as of the release date of the publication.
Contact: Information Services Unit - Headquarters, tel.: +420 274 056 789, email: infoservis@czso.cz