ČSOB value index The expectations of the company that regularly controls the market sentiment increased by 5.2% to 3.9 points in the third quarter. The index stopped the decline of two quarters and showed that companies are optimistic looking forward.
"Businessmen and companies have realized that there is no imminent danger in the economy or markets. We continue to grow and there is too much demand for companies. We see the greatest risk of labor shortages and wage increases as well as rising interest rates. We observe that companies invest mainly automation and robotics, "summarizes Petr Manda, CSOB Chief Operating Officer.
Almost half of entrepreneurs and businesses expect this year's investment to be higher than last year. Again, only 24% of respondents expect it. Other respondents predicted that the investment would stagnate. "Compared to the corresponding period of the previous year, we have increased the volume of loans, mostly we are investing in loans. Local business payment discipline is very good," adds Manda.
The increased taste is increasing
Extending your existing business plans over the next twelve months is about 19 percent of entrepreneurs and traders. In the last quarter, only 16 percent, at least five years ago, when the Czech economy grew, breathed.
"Entrepreneurs have reacted negatively to previous surveys, but the reality is pink than their expectations," says Mart Chupa, Chief Economist at ČSOB.
"The economic downturn in Europe and the Czech Republic has actually slowed down. However, this does not seem a shock but a gradual downturn that companies can adapt to through proven tools such as restructuring, innovation or reinsurance," he adds.
Companies now have a much better financial position than before the last global crisis. "Companies benefit from the 2008 crisis and are very cautious. Another issue is that they create a financial pillow for a crisis that was not prevalent before 2008," says Petr Manda. In the Czech economy, the reason for the black scenarios is not visible. "The explosion could be an unpredictable situation in countries such as Turkey, Italy and China, or worsening trade wars," the economist said.
Calls on exporters to provide exchange rates
The bank recommends banks to eliminate market risks to the maximum. "We encourage exporters to provide exchange rates in order to avoid exchange rate risk. For companies considering funding, we recommend the possibility of re-setting interest rates. This reduces the risk that higher interest costs associated with a possible future interest rate an increase in the CNB, "says Petr Manda.
The economic situation in the Czech Republic is satisfied by 71% of entrepreneurs, small and medium-sized entrepreneurs or business representatives. For example, in Slovakia only 42% of respondents. The Eastern Neighborhood Business Prediction Index is declining (but viewed over half a year). The worsening of Slovakia has led to poor demand demands.
"Slovak companies could respond to similar trends in the euro area, where we can observe a deterioration of some of the leading indicators, as well as a slowdown in growth," says Marek Gábris, Chief Economist of CSOB.
Edited for ČSOB Press