Consumer Confidence Index

Details: Created: 03 November 2016

Compared to September 2016, the overall CCI went up by 4.9 points, from -15.7 to -10.8. The present situation index increased by 6.9 points, from -21.2 to -14.3, and the expectation index went up by 3 points, from -10.2 to -7.2. It appears that a trend is continuing that has been ongoing since January (interrupted only by the interesting August swing-back, which we discussed in a blog article:). One may also see this as an extension of the upward trend that started even earlier, namely in September 2015.

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Details: Created: 19 September 2016

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In September 2016, ISET’s Consumer Confidence Index added 13 points, the single largest monthly increase in the Index since its launch more than 4 years ago. Having risen from -28.7 to -15.7 points, the CCI rebounded to levels we have last observed about two years ago, in fall 2014 (i.e. at the outset of the GEL devaluation drama). Both the Expectations and Present Situation components of the CCI soared (up by 11.1 and 14.9 points, respectively), breaking historical records for monthly increases.

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Details: Created: 18 September 2016

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In August 2016, the consumer confidence turned towards the negative compared to the previous month.

This decline was observed for almost all questions, except the questions related to the current personal financial position and the readiness to save. The question related to expected major purchases within the next 12 months experienced the biggest decrease.

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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