In the business sphere, confidence increased month-on-month, especially in industry and construction.
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“Entrepreneurs in these sectors expect growth in the pace of production and construction activities in the coming months, although they are still significantly limited by a shortage of materials. The lack of inputs is also one of the reasons for the expected rise in prices in both sectors, “said Jiří Obst, Head of the CZSO Business Tendency Survey.
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Entrepreneurs believe in the industry even though, according to Tomáš Volf from Ciftin, production still doesn’t look the best.
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“In the coming months, entrepreneurs expect growth in production activity and these expectations of future development are the main driver of their confidence,” he said.
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Confidence among consumers has stagnated at the level of recent months. The slight increase is due to a decrease in the number of households that negatively assess their current financial situation compared to the last twelve months.
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“In January, the share of households that expect the economic situation to deteriorate within one year and their own financial situation increased slightly,” explained Jakub Seidler, chief economist at the Czech Banking Association.
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“However, some households perceive their financial situation slightly better than a year ago and are also less afraid of rising unemployment. The contradictory message of some indicators was thus nullified and household confidence stagnated, “added Seidler.
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According to Wolf, greater confidence in the economy is hindered by the constant rise in consumer prices. Inflation is heading for seven percent, and this is having a negative effect on the financial side of households.
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“In times of uncertainty, people are trying to create reserves, but today they can’t create either. The general increase in prices affects the wallets of all consumers, so there is not much left for savings, “he added.
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