High Energy Prices Threaten Seven Out of ten Czech Businesses
High energy prices threaten seven out of ten Czech businesses, with energy-intensive plants, glassworks, and chemical factories feeling the sharpest pressure, Novinky reported.
Energy and raw material costs stand out as the threat entrepreneurs mention most often. Agricultural firms, food processors, and transport operators also absorb heavy hits as fuel prices climb.
Middle Eastern oil crisis fallout impacts 82 percent of businesses through regulated fuel prices. “Máme desítky služebních aut, tak nám vzrostly náklady na spotřebu o nějakých 15 až 20 procent a pociťujeme to výrazně,” Tomáš Rudolf, owner of Úklidovka Aš, told Novinky.
Two-fifths of affected companies report lower profits due to expensive energy. Nearly a third passed higher expenses directly into the prices of goods and services.
Agriculture suffers severe strain as every surveyed representative feels the impact of the oil crisis. Drought compounded difficulties for farmers this year, with 70 percent anticipating worse revenues.
External conditions remain the single largest brake on the enterprise sector. The adverse external conditions component of the Business Expectation Index dropped to a historic low.
Overall business sentiment held steady compared to the spring. “České firmy prokazují vysokou odolnost a adaptabilitu vůči nepříznivému vnějšímu prostředí a jejich stávající i plánovaná investiční aktivita naznačuje lehký optimismus pro rok 2027. Tento pohled potvrzují i naši klienti,” Pavel Prokop, executive director of corporate banking at ČSOB, told Novinky.
The total Business Expectation Index reached minus 4.4 points in the autumn. That reading matches the spring survey but drops 11 points year-on-year.
Investment plans persist despite the negative sentiment. Thirty percent of firms plan increased investments next year, while 42 percent intend to maintain this year’s spending levels.
Investments target innovations, modern technologies, and operational efficiency to drive competitiveness. Customer demand and business expansion plans show noticeable stagnation.
Artificial intelligence plays a role in four-fifths of surveyed firms in some capacity. Broad deployment remains limited to just 20 percent of enterprises.
Another 39 percent of companies plan to expand their use of artificial intelligence over the next six to twelve months. In total, 91 percent of small and medium-sized enterprises are currently pursuing some form of innovation.