Czech Economy Enters Recession In Q4 With 0.3% Contraction

RTTNews | 882 days ago
Czech Economy Enters Recession In Q4 With 0.3% Contraction

(RTTNews) - The Czech Republic's economic output contracted for the second straight quarter in the three months ended December, largely due to lower household consumption, thus entering a technical recession, preliminary estimates from the statistical office showed on Tuesday.

Gross domestic product decreased 0.3 percent sequentially in the fourth quarter, following a 0.2 percent fall in the third quarter. Economists had forecast a 0.6 percent fall. 

By contracting further in the last quarter of 2022, the economy has now entered into a technical recession, which is described as two quarters of output decline in a row.

On a yearly basis, the economic growth eased notably to 0.4 percent in the December quarter from 1.5 percent in the September quarter.

The overall annual increase was mainly supported by gross capital formation and external demand. On the other hand, final consumption expenditure had a negative influence, the agency said.

During the year 2022, overall growth in GDP was 2.5 percent, underpinned by expenditure on gross capital formation and by external demand. Nonetheless, the contribution of household final consumption was negative during the final quarter.

Data also showed that employment decreased 0.3 percent quarterly, while it rose 1.5 percent on an annual basis in the fourth quarter.

"The outlook for the economy has brightened a bit in recent months as natural gas prices have fallen sharply and business and consumer sentiment has improved, but we still think GDP is likely to be weaker than most other analysts expect over 2023 as a whole," Capital Economics economist Nicholas Farr said.

read more
Mixed Sentiment In Asian Markets

Mixed Sentiment In Asian Markets

Sentiment in Asian markets remains mixed amidst uncertainty about U.S. tariffs that kept investor sentiment fragile.
RTTNews | 10 minutes ago
DAX Down Nearly 0.5% As Investors Eye Trade Talks

DAX Down Nearly 0.5% As Investors Eye Trade Talks

German stocks are down in negative territory on Tuesday with investors digesting the latest batch of regional economic data, and closely following news about negotiations with the U.S. ahead of a July 9 deadline for reciprocal tariffs.
RTTNews | 11 minutes ago
China Manufacturing Activity Returns To Growth

China Manufacturing Activity Returns To Growth

China's manufacturing sector returned to growth in June on higher new orders and a renewed rise in production, survey data from S&P Global showed on Tuesday. The Caixin manufacturing Purchasing Managers' Index rose to 50.4 in June from 48.3 in May. A reading above 50.0 indicates expansion. The survey showed that the growth was driven by a renewed expansion in manufacturing output.
RTTNews | 1h 2min ago
Sensex, Nifty Up Marginally In Cautious Trade

Sensex, Nifty Up Marginally In Cautious Trade

Despite paring some early gains, Indian shares are up in positive territory a little past noon on Tuesday with investors making cautious moves, closely monitoring the developments on the tariff front ahead of the July 9 deadline announced by the Trump administration, and awaiting quarterly earnings updates from big name companies.
RTTNews | 2h 54min ago
UK House Price Inflation Softens In June

UK House Price Inflation Softens In June

UK house prices logged a slower growth in June reflecting weaker demand after the increase in stamp duty at the start of April, data from the Nationwide Building Society showed on Tuesday. House prices advanced 2.1 percent year-on-year in June, slower than the 3.5 percent increase seen in May. House price growth was expected to moderate to 3.3 percent.
RTTNews | 3h 14min ago
European Economic News Preview: Eurozone Flash Inflation, Final PMI Due

European Economic News Preview: Eurozone Flash Inflation, Final PMI Due

Flash inflation and final factory Purchasing Managers' survey results from the euro area and unemployment from Germany are top economic news due on Tuesday. At 2.00 am ET, UK Nationwide house price data is due. Economists forecast house prices to grow 3.3 percent on a yearly basis, slower than the 3.5 percent increase in May.
RTTNews | 4h 25min ago