site.btaConsumer Confidence Slows Down in July

Consumer confidence slowed down in July, after two consecutive quarters marked by growth - 4 percentage points (pp) in January and 4.2 pp in April, according to data of the National Statistical Institute (NSI) released here on Friday.

The overall consumer confidence indicator in July 2023 increased by 3.2 pp from its April level, entirely due to increased confidence among the urban population, the NSI reported. In April, the indicator rose by 4.2 pp compared to January, and in January 2023 it rose by 4 pp compared to October 2022.

The consumer confidence indicator is calculated as the average of the balances of households' assessments and expectations of their financial situation, expectations of the general economic situation in the country and intentions to make major expenditures on durable items.

In July, consumers continue to believe that there has been a rise in consumer prices over the past twelve months, but at a slower pace than the estimates recorded in April. Their inflation expectations for the next twelve months are less pronounced.

In July, consumers' overall assessment of the economic situation in the country over the past twelve months improved slightly, resulting in a 3.9 pp increase in the balance indicator, the NSI reported for July. Expectations of those living in urban areas remain favourable, in contrast to the population in rural areas, which is slightly more pessimistic compared to the previous survey.

The current economic situation in the country continued to be assessed in July by a majority of consumers as unfavourable for saving, and their expectations regarding their ability to save over the next twelve months are deteriorating.