Consumer confidence in the economy has fallen again

The confidence indicator changed negatively for consumers, falling by 8.1 points to 90.4. Entrepreneurs, on the other hand, are more optimistic, with confidence rising by 1.5 points to 96.2. And so it rose slightly after four months of decline.

“This is mainly due to the expected increase in the production activity of industrial companies in the coming months. In all sectors, however, there is great uncertainty about future developments, which is also accompanied by expectations of rising prices of products, goods and services for a record number of entrepreneurs, “said Jiří Obst, CZSO’s Head of Business Cycle Surveys.

In the sub-sectors, entrepreneurs trust industry the most, where the confidence indicator rose by 4.6 points month-on-month to 93.2. It also increased in construction, by 2.4 points to 114.0. On the other hand, there was a decrease in trade (by 1.2 points to 104.7) and in services including the banking sector (by 1.3 points to 96.3).

People are afraid of further price increases

On the contrary, a significant decline in confidence in the domestic economy occurred among consumers. In November, it was a month-on-month decline of more than eight points. People expect the overall economic situation to deteriorate over the next twelve months.

“At the same time, the share of respondents expecting an improvement in their own financial situation has fallen sharply again. The number of respondents worried about further price increases rose again in November, and is thus the highest in the history of the survey, “said the CZSO.

The deteriorating consumer confidence is mainly due to rising energy prices, but also other commodities and a worsening of the epidemic situation. “Compared to last month, people are much more afraid of rising unemployment and especially the deterioration of their own financial situation. They also assume that the sharp rise in prices will force them to make savings, “said Anastasija Nejasova from the CZSO’s Business Cycle Surveys Department.

However, year-on-year consumer confidence is higher. It increased by seven points. The same is true among entrepreneurs, where it even rose by 13.8 points. Overall confidence in the economy increased by 12.6 points.