Czech Republic’s consumer sentiment continues to be strong even if it has dropped from its historical high in January. Consumers are not concerned regarding the economy’s future development. This indicates that there will be fewer saving and more spending of income, according to Societe Generale. Quick growth in wage and declining joblessness underpin spending.
Hence retail sales adjusted for cars are likely to have grown 0.7% m/m in March. This will more than counter February’s 0.5% drop in retail sales. On a year-on-year basis, retail sales adjusted for car sales are expected to have grown robustly by 7%, noted Societe Generale. Following the boom in the past two years, car sales have been slowing moderately.
“We expect them to have decreased by 0.3% mom in March, translating into 6% yoy growth”, said Societe Generale.
