No major shifts in overall May CCI. The Consumer Confidence Index (CCI) decreased marginally from -24 in April to -24.1 in May, largely maintaining the new level it had reached in April. The two sub-indices of the CCI each moved in opposite directions: the Present Situation Index declined by 1 index point, while the Expectations Index rose by 0.6 points.
Although overall sentiments remain almost unchanged, the different CCI indicators experienced considerable shifts. In May, significantly more people stated that their personal financial situation had worsened, and that they had no hope their situation will change within the upcoming year. In April, 46% of respondents considered their personal financial situation to have either worsened a little or significantly, while in May this reached 66%. These results seem counterintuitive, as the monthly inflation rate has been negative for four consecutive months. Besides inflation, remittances have followed a positive trend, increasing by 4% compared to April 2023. Concurrently, it should be noted that the overall price level remains high, as the country has been experiencing a considerable period of high inflation over recent years.
This negative picture is however compensated by positive shifts in consumer expectations regarding future price and employment levels. As there is a declining inflationary trend, consumers do not expect prices to experience a further increase. As for unemployment, 36% of the respondents think the employment level will remain the same and 30% believe it will improve in the upcoming year. According to official statistics, unemployment levels in the first quarter of 2023 in Georgia declined by 1.4, which may be directing this sentiment.
BAR CHARTS: Consumer Responses by Questions