OREANDA-NEWS. July 16, 2012. Decrease of consumer confidence of Ukrainians was observed in June. The June consumer confidence index (CCI) is 84.1 which is 1.1 p. lower than in May. The decrease was primarily caused by worse economic expectations along with more fear concerning inflation and devaluation in spite of better expectations regarding changes in unemployment. This is proved by the consumer confidence survey in Ukraine, conducted by GfK Ukraine on a monthly basis.

In June 2012 the Consumer Confidence Index (CCI) decreased by 1.1 p. to 84.1. 

Index of Current Situation improved by 1.6 p. to 83.3. The components of this index changed in the following way:
Index of Current Personal Financial Standing (x1) gained 2 p. and reached 80.9;
Propensity to Consume (х5) increased by 1.3 p. to 85.8.

Economic Expectations of the population decreased by 2.9 p. to 84.6. The components of this index changed as follows:
Index of Expected Changes in Personal Financial Standing (х2) lost 4 p. to 93.6;
Index of Expected Economic Conditions in the Country Over the Next Year (х3) rose by 1.1 to 78.5;
Index of Expected Economic Conditions in the Country Over the Next Five Years (х4) fell by 6 p. to 81.7.

At the same time, better expectations regarding changes in unemployment were observed in June: the respective index is 127.5 which is 9.9 p. lower than the index value in May. Though, negative dynamics in inflationary expectations were observed: index value increased by 2 p. to 185.9. The index of devaluationary expectations of Ukrainians increased by 2.1 p. to 133.9.

The following key trends were observed in June:
Following fast improvement of economic expectations in May, June demonstrated the indices of current situation and economic expectations are flattening again. The most significant losses (- 6 p.) applied to the index of expected economic conditions in the country over the next five years. Index of expected changes in personal financial standing lost 4 p. in spite of expectations regarding changes in unemployment improved by almost 10 p. At the same time, index of devaluationary expectations improved by 2 p. again and reached the maximum indicator level 133.9 from the start of its measuring.
The most noticeable decrease of consumer confidence was observed among the group aged 46-59 (-7 p.), among inhabitants of big and average cities populated with 100 thsd and more, as well as in Southern and Northern regions of Ukraine. Consumer confidence in Southern region stay the best of all regions, Northern region demonstrates the worst one.
"In the second quarter, the consumer confidence index stabilized in somewhat higher range of 80-85 p. At the same time, increase of devaluationary expectations holds Ukrainians’ consumer confidence improvement back”, - as the GfK Ukraine analysts comment.