A slight trend reversal in the CCI. After a rise in the Consumer Confidence Index (CCI) in December, January saw a small decline – from -14.1 in December to -15.5 in January, dropping by 1.4 index points. This fall is evident in both sub-indices – the Present Situation Index declined by 0.9 points and the Expectations Index by 2 points.

A slight trend reversal in the CCI. After a rise in the Consumer Confidence Index (CCI) in December, January saw a small decline – from -14.1 in December to -15.5 in January, dropping by 1.4 index points. This fall is evident in both sub-indices – the Present Situation Index declined by 0.9 points and the Expectations Index by 2 points.

The M-o-M decline was driven by worsening consumer evaluations of their financial situations; the share of respondents reporting that their personal financial situation was improving during the last year went down from 41% in December to 29% in January. This could be attributable to higher spending during the recent holiday season. Furthermore, there has been a negative shift in consumer preferences towards making major household purchases. The share of respondents considering it not the right time to make such purchases increased from 35% in December to 39% in January. This shift in preferences might be explained by consumers’ changing priorities rather than a change in the price of home appliances and furniture, as according to official statistics, the M-o-M price for appliances has not significantly changed (refrigerators -1.3%; washing machines +2.2%; gas stoves -0.1%; computers -0.6%; chairs -1.4%; tables -1.4%; sofas +0.5%). Moreover, consumers likely had other significant expenses due to the holiday season.

Tbilisi VS. the regions. The slight decline in the CCI is evident both for Tbilisians and residents of the regions. The magnitude of change in the CCI is also similar – with a 1.2 index point reduction for Tbilisi and 1.7 for the regions. It should be noted that in Tbilisi the values of the Present Situation Index and Expectation Index are usually fairly close to each other. However, within the last two months that has not been the case, and index values diverged in opposite directions. In December and January, Tbilisians had higher expectations but a worsened perception of the present situation (Chart 2). For the regions, the gap was always evident, and it is still present with higher expectations about the future and further concerns about the present situation.

Note: Starting in July, the CCI underwent minor shifts in methodology. Specifically, the questionnaire was slightly modified, in terms of how questions were formulated when conducting a survey.