Household spending rises as savings edge lower in the Czech economy

Economic data for the third quarter of 2025 indicate a gradual shift in household behaviour and mixed signals from the corporate sector in the Czech economy, according to newly released figures from the Czech Statistical Office.

Households recorded a modest improvement in their overall financial position during the period. After adjusting for seasonal effects, income rose slightly compared with the previous quarter, while spending increased at a somewhat faster pace. As a result, the share of income set aside rather than spent edged lower, continuing a trend that has been visible for several quarters and bringing saving behaviour closer to patterns seen before recent economic disruptions.

On an annual basis, household earnings showed moderate real growth, supported by rising pay from employment. Average monthly earnings exceeded CZK 51,000, reflecting gains both compared with the previous quarter and the same period last year. Consumer spending per person also expanded, with year-on-year growth clearly stronger than the quarterly increase. Alongside this, households slightly increased funds allocated to longer-term assets, suggesting a cautious but improving outlook.

In the business sector, results were more nuanced. Companies experienced a small decline in profitability compared with both the previous quarter and a year earlier, while personnel-related expenses rose markedly over the year. Despite these pressures, businesses increased their spending on fixed assets compared with the second quarter, although overall investment intensity remained below last year’s level.

The statistical office also updated its assessment of overall economic output. The revised figures show that the economy expanded solidly during the third quarter, with growth recorded both compared with the previous quarter and on a year-on-year basis.

Taken together, the latest data suggest an economy in which households are gradually becoming more willing to spend as incomes improve, while companies continue to invest selectively amid higher costs and slightly weaker margins.