Business cycle survey - August 2020

Business confidence in the economy increased m-o-m, consumer confidence decreased

24.08.2020
Code: 070008-20
 

The composite confidence indicator (economic sentiment indicator) – in the basis index form - increased by 0.3 percentage points to 87.0, m-o-m. Business confidence indicator rises by 0.8 percentage points to 85.5 (m-o-m).  On the other hand, the consumer confidence indicator decreases by 1.6 points to 94.4, m- o-m. Economic sentiment indicator, business confidence indicator and consumer confidence indicator have significantly lower values, y-o-y.

The confidence indicator in industry increased in August, m-o-m. Confidence indicator rose by 1.7 points to 91.5. We have a bigger proportion of the respondents who evaluate their demand as insufficient. Stocks of finished goods is stable compared to July. In August, the entrepreneurs expect decreasing production activity in the next three months. Comparison with July, there is a bigger proportion of business people who expect growing employment and getting a better economic situation in the next three and six months. Confidence in the industry is lower, y-o-y.

In the construction sector, confidence in the economy slightly increased, m-o-m – the confidence indicator growth by 3.7 points to 106.7. The proportion of entrepreneurs who evaluate their demand as insufficient is still same according to July. They expect more significant growing employment for the next three months. All in all confidence in the construction industry is significantly lower, y-o-y.

The confidence indicator in the trade increased compared to July. The confidence indicator decreased by 6.9 points to 96.4. The assessment of the overall economic situation has got better significantly compared to July. The stock of goods is stable, m-o-m. In August, the share of companies that expect their economic situation to improve over the next three months increased again. However, confidence in trade is lower, y-o-y.

Confidence in selected services (including the banking sector) decreased compared to the previous month. The confidence indicator declined by 1.3 points to 75.7. The assessment of the overall economic situation is the same, m-o-m. However, the proportion of the respondents who evaluate demand insufficient decreased.  The expectations of the demand in the next three months dropped. Confidence in selected services is significantly lower, y-o-y.

Consumer confidence indicator decreased in August, m-o-m. The confidence indicator felt down by 1.6 points to 94.4. The consumers have the same worries about the deterioration of the overall economic situation as in July. Concerns about the decline of their financial situation slightly increased. The intention to save has decreased. Consumers are still worried about rising prices. In August, there is a significant proportion of respondents who are concerned about rising unemployment in the next 12 months dominated. Overall, consumer confidence is significantly lower, y-o-y.

 

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: August 17, 2020
Next News Release: September 24, 2020

This press release wasn´t edited for language.

 

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

 

  •      akpr082420.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: 24.08.2020
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