Czech Business Mood Weakens in November

The business confidence indicator in the Czech Republic edged higher to 98.6 in January 2026 from December’s eight-month low of 98, as sentiment improved in several key sectors. Confidence strengthened most notably in selected services, where the indicator climbed to 104.2 from 102.9 in the previous month. Sentiment in the industry improved slightly, rising to 92.0 from 91.5, as did the trade sector, which ticked up to 96.8 from 96.5. In contrast, confidence declined in the construction sector, with its indicator falling to 112.0 from 116.7, reflecting caution among builders and contractors.

The business confidence indicator in the Czech Republic decreased by 1.9 points to 98 in December 2025, following a 99.9 in the preceding month. This marked the lowest level since April, as sentiment continued to deteriorate within the industry sector, which dropped to an eight-month low of 91.2 in December from 95.5 in November. Industrial entrepreneurs’ expectations for production growth fell for the second consecutive month, while inventories rose slightly. Similarly, outlook in the trade sector weakened further to 96.4 from 97.0, while optimism softened for selected services, falling to 103.1 from 105.6. Conversely, confidence strengthened for the construction sector (117.6 vs 114.1 in November), with increases in the demand for construction work, employment, and service prices over the next three months.

The business confidence indicator in the Czech Republic declined by 3.5 points to 99.9 in November 2025 from 103.4 in the previous month. This marked the lowest level since July and falling back below its long-term average after three months above it. According to Jirí Obst, head of the business cycle surveys department at the CZSO, the downturn reflects several contributing factors, most notably a sharp deterioration in expectations for industrial production and a reduced outlook for hiring new workers in the construction sector. Across sectors, sentiment weakened in most areas, including construction (114.1 vs. 121.8 in October), industry (93.2 vs. 99.8), and selected services (105.6 vs. 106.2). In contrast, confidence improved in the trade sector, rising to 97 from 95.6.