Survey: Business is more cautious, perceived slowing economic pace

We present the results of the second joint survey of the Confederation of Industry of the Czech Republic with the Czech National Bank. This survey represents perception of reality and mood in 2nd quarter 2019 in Czech industry as a crucial part of Czech business.

The total balance of the examined indicators is still positive; nevertheless, the negative ratings of some indicators are rising.

Czech companies (which took part in our survey) are more cautious, as they already feel the slowdown in the rate of economic growth.

Our survey results in 2Q 2019 reflect an increase in negative scores of evaluations in some indicators (e.g. the ratings of demand and outlook in the field of future contracts), but at the same time, positive ratings remain stable or have even risen slightly.

There are persistent barriers of further economic growth such as labour costs and increase in prices of inputs. This development in the area of inputs is accompanied by a slower growth rate of prices of outputs. Output prices are rising more slowly than inputs, and this combination is reducing profitability.

Expected growth of prices of main production inputs and outputs at the one-year horizon:

 

Source: Confederation of Industry of the Czech Republic. 

The survey observes relatively negative developments in the area of investment.

 Here are available all results from the survey (in Czech language).