All analysis from category Macro comment
Macro comment
Wages in Q1 2025: Continued real wage improvement
As the health of the economy improves, wages are also increasing, both in nominal and real terms. The average gross wage increased by 6.7 per cent year-on-year to CZK 46,924 in Q1 of this year, and after taking inflation into account, real wage growth reached 3.9 per cent. However, even this is not enough for the purchasing power of wages to reach the level of 2019.
Macro comment
PMI in May: decline in new orders
In May, the Business Conditions Index remained below the neutral value of 50 points for the third consecutive year, indicating a decline in economic activity among companies.
Macro comment
Unemployment in April: Root Causes and Hidden Problems
April typically sees a higher take-up of seasonal work, leading to lower overall unemployment. This year was different.
Macro comment
Retail sales in March: growth of non-food goods continues
Retail sales had risen for the 16th month in a row in March on a year-on-year basis and did not appear to be turning around this year due to growth in real household incomes.
Macro comment
CNB: Lower inflation and risks to GDP have opened the way to lower interest rates
After a short pause, the CNB has returned to cutting interest rates. However, it still remains slightly behind the optimal interest rate path. However, the CNB's new forecast already admits that rates will fall below the neutral level of 3 per cent.
