OREANDA-NEWS. October 13, 2011. In the beginning of autumn 2011, deterioration of consumer confidence of Ukrainians was observed. The September consumer confidence index (CCI) is 74.7 which is 6.7 p. less than in August. The drop of consumer confidence was primarily caused by worsening of economic expectations along with better expectations regarding unemployment and more pessimistic inflationary expectations. This is proved by the results of the consumer confidence survey in Ukraine, conducted by GfK Ukraine on a monthly basis.

Consumer confidence index dropped by 6.7 p. to 74.7 in September 2011. At the same time, the following key trends were discovered:
The largest drop was observed for the index of economic expectations, especially expected economic conditions for the next 5 years and the propensity to consume. Expectations for the next 5 years are worse that for the next year in Kyiv and in the Eastern region
The deterioration of economic expectations occurs along with improvement of expectations regarding changes in unemployment, but deteriorating inflationary expectations. Taking into account the highest expression of these trends in large cities, we can assume that the main factor is the growing fear of a second wave of global financial crisis and devaluation expectations
The deepest decrease in expectations occurred among the most active citizens of the middle age (31-45 years) with above-average income level who live in cities with population over 500 thousand people. In regional terms the largest drop of CCI was observed for Kyiv, Southern and Eastern regions along with growth in the West and the Center. It was for the first time during a long period when CCI in Western Ukraine was the largest among all regions.

Index of the Current Situation decreased by 6.1 p. to 72.8. Components of this index changed in the following way:
Index of Current Personal Financial Standing (x1) lost 3.5 p. and reached 71.8;
Propensity to Consume (х5) has fallen by 8.7 p. to 73.8.

Economic expectations of the population decreased by 7.2 p. to 75.9. Components of this index changed as follows:
Index of Expected Changes in Personal Financial Standing (х2) declined by 4 p. to 83.2;
Index of Expected Economic Conditions in the Country Over the Next Year (х3) dropped by 8.1 p. to 70.7;
Index of Expected Economic Conditions in the Country Over the Next 5 Years (х4) decreased by 9.4 p. to 73.9.

At the same time, expectations regarding changes in unemployment continued to grow in September: the respective index reached 125 which is 2.8 p. lower than the index value in August. However, inflationary expectations worsened: this index increased by 1.8 p. up to 184.6.

"Fear that financial crisis will repeat along with the low confidence in the government has caused decline of consumer confidence despite the good harvest and significant GDP growth. Such level of confidence might provide negative impact to the market of durables and to the entrepreneurs’ willingness to invest", as GfK Ukraine analysts comment.