Czech Consumers Are More Pessimistic Than They Have Been in a Year

Consumer confidence in the Czech Republic fell by 3.3 points to 102.3 points in August. This was reported by the Czech Statistical Office (ČSÚ) on August 24. The last time the indicator was lower was twelve months ago. The overall economic sentiment indicator declined by 0.6 points to 100.5 points.

Businesses assessed their situation differently than households. Their confidence indicator remained unchanged at 100.2 points. Only the industrial sector saw an increase, rising by 0.3 points. In the trade sector, the figure fell by 1.1 points, and in construction by 0.6 points.

“Business sentiment remained at its long-term average in August, primarily thanks to the expected increase in industrial production and, to a lesser extent, the expected rise in demand in selected service sectors,” said Jiří Obst, head of the Economic Surveys Department at the ČSÚ.

Among households, the proportion of those expecting a worse economic situation over the next twelve months rose for the second consecutive month. The number of those not planning any major purchases also increased.

“The decline in consumer confidence in August, as in the previous month, was primarily due to growing concerns about a deterioration in the overall economic situation in the Czech Republic. This was compounded by greater uncertainty among households about their own financial situation and concerns about further price increases,” explained Anastasija Neradová from the same ČSÚ department.

Sales are still strong, but growing at a slower pace

The hard sales figures paint a more positive picture than consumer sentiment. In June, retail sales excluding the automotive sector rose by 3.6% in real terms compared to the previous year. In May, the increase had been 4.8%. Compared to the previous month, sales fell by 0.1%. March remains the strongest month of this year, with 6.2% growth. Since December 2023, the Czech retail sector has been growing year-over-year without interruption.

“Sales rose in the non-food, food, and fuel sectors. Online sales contributed the most to this growth,” said Jana Gotvaldová, head of the Department of Trade, Transportation, and Services Statistics at the ČSÚ.

Online retail remains the driving force: Internet and mail-order retailers increased their sales in June by 12.6% compared to the previous year. Non-food sales rose by 5.4% overall, food sales by 2.1%, and fuel sales by 0.3%. Pharmacies and retailers of health products posted a 7.4% increase. In contrast, sales at stores selling computer and communications technology declined by 1.5%, and sales at stores for culture, sports, and leisure fell by 1.1%.

What German retailers are taking from this

Czech households continue to shop, but they are postponing purchases and avoiding expensive electronics. German manufacturers of consumer electronics, sporting goods, and leisure products are thus facing the weakest segment of the market. By contrast, suppliers of food, drugstore items, and health products are seeing stable demand.

The double-digit growth in online retail is shifting the balance of bargaining power. Anyone wanting to sell in the Czech Republic needs listings on Alza, Rohlik, and Notino as well as with brick-and-mortar chains. The 1.1-point decline in the retail indicator signals that retailers themselves are anticipating weaker demand. For negotiations regarding the holiday season, this means tougher price talks and shorter purchase commitments.

Sources: Czech Statistical Office, Business Surveys August 2026 and Retail June 2026 (CS/EN)

SK, Frankfurt