Consumer Confidence Index

Details: Created: 26 August 2016

In July 2016, the consumer confidence index (CCI) sustained its upward trend, now lasting for six consecutive months.

The monthly increase in the overall index was 2.8 points, but in absolute terms consumer confidence is deeply in the negative, currently standing at -24.2 points. This means that those people who answer the questions about their current situation and their expectations pessimistically outnumber those who give positive answers. -24.2 is much better than the CCI’s all-time low that occurred in September 2015, when it reached -40.4 points.

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Details: Created: 27 July 2016

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June 2016 - CCI growth is sustained for five consecutive months.

Similar to the situation in May, the increase in the overall index was modest. There was a sustained increase in the present situation index, as households see some stability in their current financial situation. There was almost no improvement in the expectations index . Expectations may get a further boost later on in the year, particularly during the pre-election period.

A number of factors could have affected consumer confidence in June. These include fluctuations of the GEL/USD exchange rate in the second half of the month; inflation rate (currently very low); the increase in the number of tourists entering Georgia; and reports of a good harvest of cereal crops.

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Details: Created: 05 July 2016

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The Georgian Consumer Confidence Index (CCI) continued to recover for the fourth straight month in May 2016, gaining 0.9 points from April 2016. At -28.2 points, the CCI remains well below the peak level of -1.4 points recorded in November 2013, but is markedly stronger compared to the bottom of about -40 points reached in Fall 2015.

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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