Rise in CCI: Consumer confidence increased by 3.3 index points from -34.4 in April to -31.1 in May. Both the Present Situation Index and the Expectations Index contributed to the increase, with the Present Situation Index increasing by 4.4 index points and the Expectations Index by 2.2 points (Chart 1).
One of the components of CCI that saw volatility in April, people’s ability to save, got back on track and increased by 9 index points in May. Furthermore, people’s views on the change in their personal financial position improved by 8 index points and reached the highest peak observed since the hit of the pandemic. Additionally, expectations about making major household purchases increased by 8 points. Possible contributors to the increase might be highly increased money transfers to Georgia: remittances in May grew by 169.4% compared to the same month of last year (y-o-y). Also, the country’s exports saw exceptional growth in May, a 48% increase y-o-y that will generate more income for the country’s citizens.
CCI grew for both Tbilisians and residents of the rest of Georgia by 3.3 and 3.8 index points, respectively. However, the gap between the two still remains. Current price changes remain more detrimental for people from the regions. Also, their views about future price changes are more pessimistic, as for the expected employment levels.
BAR CHARTS: Consumer Responses by Questions