Consumer confidence has slipped in recent months amidst deteriorating expectations and rising insecurity felt by Ukrainians ahead of the presidential election, according to study results released Nov. 15.
ket research firm GfK-USM and the International Center for Policy Studies, a think tank, calculated that the Consumer Confidence Index (CCI) dipped 1.8 points in the third quarter, and stood at 100.3 at the end of October.
The index is determined through a random survey of 1,000 individuals aged 15 to 59, an age group the study’s organizers say represents 61.3 percent of the country’s most active consumers.
The study’s margin of error is 3.2 percent.
“Consumer confidence dropped mainly because of a substantial increase in negative expectations of the country’s economic development,” reads a statement issued by the study’s organizers.
“In general, consumer confidence deteriorated primarily among high- and average-income Ukrainians, as well as among younger consumers, mainly those aged 15-30,” the statement reads.
Consumer confidence of Ukrainians aged 46-59 rose following additional pension payments by the government in October.
Consumer confidence deteriorated the most in Ukraine’s eastern oblasts, where the CCI dropped 8.1 points in the third quarter, compared with the second quarter of this year.
Meanwhile, consumer confidence in the nation’s rural regions remained the lowest, at 91.1 total points, a 1.4 point drop compared with the second quarter’s consumer confidence index.
“The poll revealed that in the last four months, rural areas were the only ones where the propensity to consume failed to improve.
“Apparently, incomes of rural residents remain low and inflation is not affecting their propensity,” reads the statement.
The corresponding Index of Economic Expectations slid six points during this period, to 99,” the statement reads, adding that a value below 100 points shows that the share of Ukrainians with negative economic expectations prevails.
The IEE index dipped below 100 for the first time in the past twelve months.
