CZECH companies are growing more confident and slowly starting to look at new investment as a succession of strong data shows the beaten-down economy is beginning to spring back.

    A year after the central European country climbed out of a record-long recession, Czech consumers are regaining confidence and some firms are planning to increase production and take on new workers.

    State agency CzechInvest said last week it had already received 100 applications for investment aid this year, the most since 2008 and more than the 2013 total of 98 applicants.

    Manufacturing is now growing, spurred by double-digit growth in exports to Germany and other Western markets. Consumers also have less to worry about as a new centre-left cabinet reverses some of the fiscal restrictions of the previous administration.

    That is feeding into a new optimism for the economy, says Czech Industry Confederation vice president Radek Spicar, although many will likely err on the side of caution for now.

    “[Companies] will be investing more. Their investment appetite is increasing, that is for sure,” he said.

    “They see clear signs of improvement, they feel the situation is getting better, but ... companies are still very careful because what they’ve been through in the last few years has taught them a lesson.”

    Slumping demand at the height of the eurozone’s debt crisis along with budget cuts and higher taxes under a former center-right government had helped tilt the Czech economy into an 18-month recession that only ended last year.

    But the economy — and mainly exporters — got a reviving jolt from the central bank’s currency interventions last November to fight the risk of deflation. The move has weakened the crown by more than 6 percent, making Czech-made cars, auto parts, electronics and other goods more attractive.

    Otto Danek, who runs small electric motor maker ATAS Elektromotory Nachod and is vice-chairman of the Exporters’ Association, said his sales are up 9 percent so far this year. He plans more hiring but is in no rush, illustrating a trend that analysts say show job growth will only come later.

    (SD-Agencies)