New data from the Czech Statistical Office paint a mixed picture of the country’s economic mood: while business confidence fell slightly again in July, consumers in the Czech Republic are more optimistic than they have been for nearly four years.
Confidence in the Czech economy dipped marginally by 0.4 points to 99.7 in July — reflecting opposing movements within its composite confidence indicators. Business confidence declined by 1.2 points to 98.8, whereas consumer confidence rose significantly by 3.4 points to 104.1, reaching its highest level since September 2021.
By sector, business sentiment brightened only in retail (+2.6 points). In selected service areas (-2.1 points) and industry (-1.0 point), it declined, while in construction it remained unchanged from June. “Business confidence has weakened slightly for the second month running in July. Companies continue to struggle with insufficient demand — nearly half of industrial respondents cite this as a major barrier to growth, and around one third in construction,” said Jiří Obst, Head of Economic Surveys at the Czech Statistical Office (ČSÚ).
Among households, the trend points in the opposite direction. The consumer confidence indicator rose to 104.1 points. The proportion of those expecting a deterioration in the overall economic situation in the coming twelve months decreased. Meanwhile, more households anticipate an improvement in their own financial situation; their assessment of their current financial state remained unchanged compared with June. The share of respondents not planning any major purchases in the next twelve months also declined slightly.
“Consumer confidence rose markedly in July after two months of stagnation — reaching its highest level since September 2021. Concerns about a worsening overall economic situation in the Czech Republic are easing. At the same time, households are looking more confidently at their own financial prospects for the coming year,” explained Veronika Ptáčková from ČSÚ.
