Rise in CCI. The Consumer Confidence Index experienced an increase of 3.4 index points – from -24.1 in May to -20.7 in June. This is the highest mark the CCI has reached since the pandemic struck in March 2020. The month-on-month (MoM) positive shift was mostly driven by an increase in consumer expectations about the future economic situation. Notably, the Expectations Index rose by 5.9 index points, while the Present Situation Index increased by 1 index point.
In May, there was a decline in consumers’ assessment of their current and expected personal financial situations, and this never reversed in June. Rather, the MoM increase derived from heightened sentiment towards future inflation and unemployment levels among the interviewed population; those expectations already having been on a rise since May. Although high price levels have been sustained over recent years, the majority of interviewed respondents do not expect these levels to experience a further increase – where 40% of respondents believe that prices will rise at a slower pace, whereas 39% state that prices will remain the same or decline.
As for expectations about unemployment, consumers appear to feel relatively stable on that front. Specifically, almost half of the respondents think that current unemployment levels will remain unchanged, while 35% expect the unemployment level to decrease.
In spite of positive monthly changes in the CCI, the overall value of the index is negative, signaling low level of consumer confidence in Georgia.
BAR CHARTS: Consumer Responses by Questions