In July 2008 the consumer confidence indicator deteriorated by 2.7 percentage points compared to its April level, the National Statistics Institute (NSI) reported.

As a whole, the July survey registers increasing pessimism in consumers assessments and expectations as compared to the expressed opinions three months before.

Assessments as regard to the changes in the financial situation of households over the last 12 months as well as expectations for the next 12 months are more unfavorable, the NSI survey showed. The balance indicators fell respectively 3.4 and 4.9 percentage points against April.

Increased pessimism was also recorded in the assessments about the overall economic situation in the country at the moment, as well in 12 months ahead expectations.

Consumers expect inflation to rise - plus 5.4 percentage points increase in the balance. However, as regards the expected unemployment the consumers continued to be positive disposed as in July the balance indicator dropped by 0.6 percentage points compared to the results of April inquiry.

Compared to consumers opinions expressed 3 months ago, the last inquiry of NSI recorded a worsened total assessment of the present situation in the context of “a right time – a bad time” both for savings and making major purchases for durable goods.

The results of inquiry in July recorded also more pessimistic consumers’ expectations concerning future purchases (expenditures)1 in the next 12 months and that referred to spending money for home improvements, buying or building a home and buying a car. Only a positive tendency was observed in consumers’ intentions about purchasing durable goods over the next 12 months.

Source: National Statistics Institute (NSI)

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