Confidence in the Czech economy rose slightly in August, with the overall index increasing 1.4 points month‑on‑month to 101.1, driven by stronger business sentiment while consumer confidence slipped. Entrepreneurial confidence climbed 2.7 points to 101.5, whereas consumer confidence fell 5.1 points to 99.0, the Czech Statistical Office reported on 25 August 2025.

Improvement was strongest in selected service sectors, where expected demand rose markedly, pushing the services confidence indicator to its highest level since April 2008. "The favourable month‑on‑month development of business confidence is mainly due to an improving situation in selected service sectors, with expected demand rising particularly in the financial sector," said Jiří Obst of the CSO. Business confidence also rose in construction (+1.2 points) and trade (+1.1), while industry was unchanged and services gained +5.9 points.

On the consumer side, a larger share of households now expect a deterioration in the overall economy and in their personal finances, and more households rate their current finances as worse than over the past 12 months. "In August consumer confidence returned slightly below its long‑term average," noted Anastasija Neradová of the CSO. Year‑on‑year, overall confidence was up 7.2 points, entrepreneurs +8.3 and consumers +1.6. ČBA chief economist Jaromír Šindel added that easing service inflation and a stronger koruna could send a dovish signal to the CNB, leaving open the possibility of a further rate cut below 3.5% next year. #CzechRepublic #CSO #CNB #inflation #FiatNews