Czech's consumer spending likely solid

Czech Republic's consumer spending is moving in a positive momentum, by increasing to 498.10 bn CZK in Q2 2015, increasing slightly from that of Q1 2015. The country's consumer confidence also improved in October to 104.80 from 103.30 in September.

Nevertheless, the retail sales, adjusted for car sales, likely continued to grow solidly. The August's drop was likely caused by unfavourable weather this drop was fully offset in September, with retail sales, excluding car sales, growing by 1.7%. 

"The retail sales are likely to have advanced by 0.8% mom in September even though car sales decreased by 1.0%, according to the estimates. Car sales have dropped for three months in a row and are evidently losing momentum", says Societe Generale. 

The country's consumers' circumstances are likely solid. The unemployment rate has been continuously decreasing, and wages have accelerated recently. The consumer spending will be the main growth driver in the coming quarters.