The business confidence indicator fell by 2.9 points to 87.7 and the consumer confidence indicator by one point to 84 points. Although consumer confidence fell more slowly in March, it fell more sharply in recent months.
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All three indicators are significantly lower year-on-year. The composite indicator was 95.1 a year ago, so it fell by 8.1 points. The consumer confidence index fell by 16.9 points year-on-year from 100.9. The mood of entrepreneurs then fell by 6.2 points year on year.
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“Part of the business and certain segments of services are still closed due to the epidemic, and the possibility of a short-term lockdown is borne even by the hitherto almost untouched industry,” said Jiří Obst, head of the CZSO’s business cycle research department.
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“The significant level of uncertainty in the business sphere has thus been reflected in the fluctuating confidence in the economy in recent months,” he added.
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The only sector where confidence has risen is construction. The confidence indicator in this area rose by 1.8 points to 116.4. However, year-on-year confidence in construction is lower.
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“Pandemic developments, the long-term closure of the economy and frequent changes in the measures in force have affected confidence in several key segments. Entrepreneurs’ confidence fell the most in selected services, including banking, where the confidence indicator fell by 5.1 points to 76.8 points, ”said Pavel Peterka, the chief economist of the Roklen Group, about the results of the survey.
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“In the services sector, it reinforces the view that current demand is insufficient and that it will not recover significantly in the next three months. The decline in mood was not avoided even by industry, which has been reporting a problem with a lack of production inputs since the beginning of the year, ”added the economist.
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“The slow pace of vaccination and the still postponed end of the lockdown of the economy have a negative effect on consumer sentiment, which fell for the third time in a row month-on-month in March. The effects of a pandemic are most often fueled by fears of losing a job. The share of consumers who are concerned about the deterioration of their own financial situation and rising prices remains the same in March compared to February, ”concluded Peterka.
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