Czech retail sales likely to have remained solid at the beginning of this year

The Consumer confidence has continued to improve in the Czech Republic, having moved into positive territory in November 2014 and reaching a new peak not seen since March 2007. 

The willingness to spend is mainly supported by low inflation, higher employment and fiscal expansion, with a positive impact on real household disposable income.

Societe Generale notes as follows:

We expect a 0.7% increase in retail sales for January (mom, SWDA), supported by higher car sales as well as other sales; in yoy terms, we see retail sales rising 4.3% (5.0% SWDA).