Consumer Confidence in Ukraine Declined in June 2013
OREANDA-NEWS. Consumer confidence of Ukrainians did not change significantly in June 2013 comparing to May. The Consumer Confidence Index (CCI) lost 0.5 p. to 82.7. Despite the decline of inflationary expectations, propensity to consume decreased significantly to the lowest level in the last three years. Devaluation expectations increased slightly since January. It is proved by the data on Ukrainians’ consumer confidence survey conducted by GfK Ukraine on monthly basis.
In June 2013, the Consumer Confidence Index (CCI) remained almost unchanged: it is 82.7 that is 0.5 p. less than in May.
Index of Current Situation is 81.2 that is 2 p. worse than the index meaning in May.
The components of this index changed in the following way:
Index of Current Personal Financial Standing (x1) increased by 2.2 p. and reached 85.1;
Propensity to Consume (х5) continued rapid decline: it is 77.3, that is 6.1 p. worse than this indicator in May.
Economic Expectations of the Population also did not changed radically: the respective indicator is 83.6, which is 0.5 p. higher than the May level. The components of this index changed as follows:
Index of Expected Changes in Personal Financial Standing (х2) lost 2.7 p. to 91.2;
Index of Expected Economic Conditions in the Country Over the Next Year (х3) is 79.8, that is 3.8 p. better than the May level;
Index of Expected Economic Conditions in the Country Over the Next Five Years (х4) improved by 0.4 p. to 80.
Concerns of Ukrainians regarding unemployment dynamics improved in the beginning of summer: the respective indicator is 129.3 that is 6.9 p. less than in May. Positive dynamics of inflationary expectations continued: the respective indicator is 175.1 that is 6.4 p. less than the indicator in May. At the same time, expectations of Ukrainians regarding the exchange rate of hryvnia for the next three months declined: index of devaluation expectations grew by 3 p. to 124.
The following key trends were observed in June:
Consumer confidence index did not change significantly in June comparing to May. Despite the drop of inflationary expectations index, propensity to consume declined significantly to the lowest level in the last three years. Besides, devaluation expectations increased slightly for first time since January.
Good weather conditions for agriculture created prerequisites for seasonal decline in unemployment expectations and higher level of optimism about the economic development over next year. At the same time, index of expected changes in personal financial standing declined.
Consumer confidence improved among young Ukrainians and citizens with average income level, while decline was observed in the other age and income groups. Confidence decreased significantly in the East, while considerable improvement was observed in the other regions except the West.
"Expectations of the good yield, decline of GDP and worse situation with the state budget affect consumer confidence in opposite ways, so it will continue to fluctuate in small range unchanged further in the year", as GfK Ukraine analysts comment.
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