Business cycle survey - December 2020

Overall confidence in the economy increased m-o-m

28.12.2020
Code: 070008-20
 

The composite confidence indicator (economic sentiment indicator) – in the basis index form - increased by 5.9 percentage points to 87.9, m-o-m. Both parts of the indicator rise. Business confidence indicator growths by 5.4 percentage points to 87.1 (m-o-m), and consumer confidence indicator increases by 8.6 percentage points to 91.7. Economic sentiment indicator, business confidence indicator and consumer confidence indicator have significantly lower values, y-o-y.

In industry, business confidence increased, m-o-m. The confidence indicator growths by 4.9 points to 92.8. The share of industrial enterprises evaluating their current total demand as insufficient decreases in the comparison with November. The stock of finished products has not changed. The share of entrepreneurs expecting the growth rate of production activity for the next three months rises. The confidence in industry is lower, y-o-y.

Confidence of entrepreneurs in the construction growths, m-o-m. The confidence indicator increases by 4.9 points to 92.8. The share of entrepreneurs evaluating their current demand for construction work as insufficient decrease compared to November. Entrepreneurs in the construction industry estimate that the current number of employees will not change in the next three months. Compared to December 2020, confidence in the construction industry is significantly lower.

Confidence in the trade sector has risen. The confidence indicator growths by 1.1 points to 93.2, m-o-m. The share of entrepreneurs evaluating the overall economic situation as well did not change after the November growth. Expectations concerning the economic situation for the next three months are higher in December. The stock of goods has not changed. Confidence in trade is lower, y-o-y.

In selected service sector (including the banking sector), confidence indicator growths (after the significant sharp in the previous two months). The confidence indicator increases by 6.8 points to 78.0. All sub-indicators make a contribution to the growth. The assessment of the current economic situation gets better in the comparison to November. The share of respondents negatively evaluating the current total demand decreases. The share of entrepreneurs expecting an improvement in demand in the next three months increases. Confidence in selected services is significantly lower, y-o-y.

Consumer confidence indicator growths, m-o-m. The confidence indicator rises by 8.6 points to 91.7. Consumers worries about the worsening overall economic situation decreases in December. Consumers' concerns about their financial situation are lower than in November. The intention to save has increased. The number of consumers worried about rising unemployment in the next twelve months decreases, m-o-m. Concerns about rising prices remained as high as in November. Compared to the same month last year, consumer confidence is significantly lower.

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Data for the business and consumer part of the business cycle surveys were collected from 1st to 17th December 2020.

 

Notes:
Responsible manager: Juraj Lojka, Director of Business Statistics Coordination and Business Cycle Surveys Department, tel. +420731439291,  e-mail: juraj.lojka@czso.cz
Contact person: Jiri Obst, Head of Business Cycle Surveys Unit, tel. +420604815440, e-mail: jiri.obst@czso.cz
Data source: CZSO business survey, Data Collect consumer survey (https://www.datacollect.cz)
End of data collection: December 18, 2020
Next News Release: January 25, 2021

This press release wasn´t edited for language.

Business and Consumers Surveys are co-financed by grant agreements of the European Commission DG ECFIN.

 

  •      akpr122820.docx

  • Annexes:
  • Table 1 Confidence Indicators – basic indices
  • Chart 1 Confidence indicators – base indices, seasonally adjusted (2003–2020)
  • Chart 2.1 Confidence Indicators for industry, construction, trade, and in selected services – base indices, seasonally adjusted (2003–2020)
  • Chart 2.2 Balances of seasonally adjusted confidence indicators for industry, construction, trade, and in selected services (2003–2020)
  • Chart 3 Economic Sentiment Indicators – international comparison, seasonally adjusted (2007-2020)
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Published: 28.12.2020
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