ISET

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.

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.

In April 2016, the consumer confidence index (CCI) continued to increase, sustaining the trend which started in January. From an economic perspective, the lari’s appreciation (from 2.32 to 2.23 GEL/USD) was one of the most important visible developments in April. Furthermore, with Easter celebrations underway, many stores offered discounts on a variety of consumer items. This helped position April as a good time for major purchases in the minds of consumers. Lastly, the pre-election period has started, affecting the expectations component of the index.

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