Consumer confidence in Ukraine, June 2010: Wave of consumer optimism subsides
Results of consumer confidence survey in Ukraine, a joint project between GfK Ukraine and the International Centre for Policy Studies.
After growing uninterruptedly for 10 months, the Consumer Confidence Index in Ukraine slipped 2.6pp to 94.5 in June 2010. The reason for this decline in the consumer mood was a 6.3pp drop in economic expectations, which settled at a still-optimistic 102.6. The biggest decline, by 9.3pp to 100.9, was the index of long-term economic expectations x4. By contrast, assessments of the current situation improved further, rising 2.9pp to 82.2, largely due to a revived propensity to consume.
Worsening expectations of the economy in June 2010 could be seen in growing expectations of inflation and changes in unemployment. The Index of Inflationary Expectations (IIE) inched up 2.1pp to 175.7, while the Index of Expected Changes in Unemployment (IECU) surged 4.9pp to 106.9.
"The positive effect of the change of Administration on the consumer mood in Ukraine is fading,” notes ICPS’s Social Economy Program Manager Maksym Boroda. "This is completely in line with a slip in the ratings of the President, the Party of the Regions, and government institutions seen in June. Still, indicators, such as a slowdown in Ukraine’s economy, the hard Budget policy of the new Government and its plans to raise the retirement age, a draft Tax Code that threatens small businesses, and expectations of higher prices for gas and residential services, have all affected consumer expectations of both the economy and inflation. Worsening expectations of the job situation could be related to the difficult situation in the steel industry.”
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Survey "Consumer Confidence in Ukraine"
