Consumer Confidence Index

Details: Created: 24 May 2017

In May 2017, the Consumer Confidence Index (CCI) sustains its upward trend, increasing by 3.6 points compared to April (moving from -25.6 to -21.9). Its first component, the Present Situation Index, rises by 3.4 points (from -32.8 to -29.4), and it second component, the Expectations Index, goes up by 4.2 points (from -18.5 to -14.3).

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Details: Created: 20 April 2017

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In April, the CCI went up by 5.4 points (from -31 to -25.6). We believe that two factors stimulate the raised consumption mood of Georgians: firstly, the new opportunity to travel visa-free to the countries of the European Union; secondly, the stabilization of the lari exchange rate.

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Details: Created: 20 April 2017

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After the sharp fall in consumer confidence that occurred in December 2016, the index continues in a mostly horizontal direction with a minor but still noticeable negative trend. March 2017, with a minor decrease by 0.1 points, very much fits in this story of a “slow death of the Georgian economy”. The present situation index decreased by 0.3 points, albeit much less than in the previous months, while the expectations index has stayed literally the same (-25.4 points). Maybe this indicates a stabilization (though at a low level) or even heralds a turnaround?

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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