The business confidence indicator increased by 2.8 points month-on-month to 98.0. “The overall confidence of entrepreneurs in the economy has increased for the second time in a row and is close to its long-term average,” commented Jiří Obst, head of the economic survey department of the CZSO.
“Although the sentiment among entrepreneurs is gradually improving, many are still limited by insufficient demand, limited availability of selected inputs and, in some sectors, a lack of qualified employees,” he added.
According to him, entrepreneurs cite legislation, a highly competitive environment or general uncertainty from the current geopolitical situation as other barriers to growth.
Consumer confidence increased by 5.8 points month-on-month to 92.9. According to the CZSO, compared to March, households are less worried about the deterioration of the overall economic situation and, compared to the previous twelve months, assess their own financial situation slightly better.
The number of consumers expecting a deterioration in the coming twelve months also decreased. Month-on-month, the share of respondents who believe that it is not a good time to make large purchases decreased slightly.
“April data showing household confidence at highest since October 2021 confirms improving consumer sentiment. However, even relatively favorable current data did not change the fact that overall consumer confidence still remains significantly below its long-term average,” the CZSO said.
People are switching to cheaper brands of food, they have cut back on restaurants
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