Consumer Confidence Index

Details: Created: 18 October 2018

In September 2018, the Georgian Consumer Confidence Index decreased marginally by 1 index point compared to August 2018 (from -14.2 to -15.2). Negative dynamics can be observed for the second consecutive month; however, in September, a negative change was observed, caused by a drop in the Expectations Index of 4.4 index points (from -8.7 to -13.1), while in the previous month the decrease was caused by a deterioration in the Present Situation Index, which now seems to have recovered slightly by 2.5 index points, again compared to August, from -19.8 to -17.3.

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Details: Created: 06 June 2018

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In April 2018, Georgian Consumer Confidence Index (CCI) lost 1.5 index points, dropping from -17.5 to -19. This tiny change is a signal of stability (or stagnation) as far as domestic demand is concerned. Whether no change is good change for Georgia is debatable. In any case, the month of April merely continues a long term no-change trend dating back at least to September 2017.

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Details: Created: 22 May 2018

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March 2018 extends a long period of “business-as-usual” for Georgian consumers. The overall CCI improved by only 1.6 index points (from -19.1 to -17.5), remaining within the narrow band of [-21, -16] in which it has hovered since July 2017. All the improvement in March is due to the 5.3 index points increase in the Present Situation Index (up from -27.4 to -22.2). Expectations have actually declined by 2 index points (down from -10.8 to -12.8).

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CCI Methodology

The ISET Consumer Confidence Survey follows the standard EU methodology (see Useful Links): we randomly sample 300-350 individuals on a monthly basis and question them about the past, current and future financial situation of their families and the country as a whole.Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy. In essence, if consumer confidence is higher, consumers are making more purchases, boosting the economic expansion. On the other hand, if confidence is lower, consumers tend to save more than they spend, prompting the contraction of the economy. A month-to-month diminishing trend in consumer confidence suggests that in the current state of the economy most consumers have a negative outlook on their ability to find and retain good jobs. Read more