In August 2016, the consumer confidence turned towards the negative compared to the previous month.

This decline was observed for almost all questions, except the questions related to the current personal financial position and the readiness to save. The question related to expected major purchases within the next 12 months experienced the biggest decrease.

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.

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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