All analysis from category Macro comment
Macro comment
Purchasing Managers' Index in March: Decline in production and orders
The start of this year has not been very favourable for Czech companies, as indicated by the March Purchasing Managers' Index. The index remained unchanged last month and, as in February, reached 44.3 points, which, incidentally, is the lowest value compared to other countries where this indicator has already been published.
Macro comment
March state budget: public finances fall into the abyss
In January-March, the central government ran a deficit of CZK 166.2 billion. In March alone, the budget was in deficit by CZK 46.5 billion. The twelve-month balance rose to CZK 467.4 billion and we are nowhere near the full-year target of CZK 295 billion.
Macro comment
Retail sales in January: sales decline continues at the beginning of the year
Retail sales fell for the ninth month in a row in January. The decline is still evident in most product groups, in other words, no significant improvement is expected in the coming months. Retail sales excluding motor vehicles rose by 0.3 per cent month-on-month on a calendar and seasonally adjusted basis. On a year-on-year basis, retail sales fell by 7.7 per cent on a calendar-adjusted basis.
Macro comment
Inflation in February: slow decline in inflation
Consumer prices jumped by 0.6% month-on-month in February. This is an uncomfortably fast rise. Many analysts and probably the CNB had expected slower growth. Since consumer prices rose by 1.3% in February 2022, year-on-year price growth fell by 0.8 percentage points to 16.7%.
Macro comment
Industry in January: slump held back by the automotive sector
Industrial data from January show a decline in production that has been ongoing for several months in most sectors. This decline was partly held back by developments in the automotive sector, but falling domestic and foreign demand means that a dramatic improvement cannot be expected in the coming months. Industrial production declined by 1.4 per cent year-on-year after adjusting for calendar effects, and fell by 2.7 per cent month-on-month after calendar and seasonal adjustments. Although the value of new orders rose by 1.6 per cent, new orders from abroad fell by 3.5 per cent, which is a problem for a small export-based economy.
