October 2022 | CCI: Descending confidence
22 November 2022

Worsened CCI. The Consumer Confidence Index fell from -24.1 in September to -28.3 in October (a 4.2 index point decline). Both the Expectations Index and the Present Situation Index moved downwards in tandem, declining by 3.3 and 5.1 points, respectively.

Relatively, the most notable fall is seen from consumer sentiment regarding making major household purchases (such as washing machines, computers, ovens, refrigerators, etc.), given the current circumstances (an 11-point decline). The indicator maintained a positive trend over the summer within the overall CCI, however, the trend reversed in October. Additionally, expectations about making such purchases in the upcoming year declined (9 points). One possible explanation might be the reduction in consumers’ current disposable income compared to the summer, when the income from trade and tourism was high. Two-digit inflation is also contributing to reduced disposable income, as food and housing have become particularly expensive. In October, according to the annual inflation rate, the price of food and non-alcoholic beverages increased by 15.8%, and for housing, water, electricity, gas, and other fuels by 13.5%. Furthermore, people’s ability to save fell by 7 points. This indicator depicted a significant downward trend, starting from July and reached its lowest mark since the hit of the pandemic, which can be explained by all the above-mentioned factors.

Sentiment worsened for both Tbilisians and residents from the rest of Georgia. For people living in the capital, the CCI fell by 4.1 and for the rest – by 4.5.

BAR CHARTS: Consumer Responses by Questions