OREANDA-NEWS. September 19, 2012. Increase of consumer confidence of Ukrainians was observed in August. The August consumer confidence index (CCI) is 86.7 which is 5.6 p. higher than in July. The improvement was primarily caused by better economic expectations along with less fear concerning unemployment. This is proved by the consumer confidence survey in Ukraine, conducted by GfK Ukraine on a monthly basis.

In August 2012 the Consumer Confidence Index (CCI) increased by 5.6 p. to 86.7. 

Index of Current Situation decreased by 0.6 p. to 80.6. The components of this index changed in the following way:
Index of Current Personal Financial Standing (x1) lost 0.3 p. to 83.7;
Propensity to Consume (х5) decreased by 0.8 p. to 77.5.

Economic Expectations of the population increased by 9.7 p. to 90.7. The components of this index changed as follows:
Index of Expected Changes in Personal Financial Standing (х2) gained 3.4 p. to 94.8;
Index of Expected Economic Conditions in the Country Over the Next Year (х3) grew by 16.1 to 88.5;
Index of Expected Economic Conditions in the Country Over the Next Five Years (х4) increased by 9.6 p. to 88.9.

At the same time, better expectations regarding changes in unemployment were observed in August: the respective index is 121.7 which 5.8 lower than the July value. Though, small negative inflationary expectations dynamics were observed: index value increased by 0.1 p. to 182.2. The index of devaluationary expectations of Ukrainians increased by 0.3 p. to 134.8.

The following key trends were observed in August:

After decrease in June and July, August renewed the consumer confidence improvement, so that the index exceeded its May level and became comparable to the July, 2010 value. Interestingly, index of current personal financial standing (x1) and propensity to consume (x5) decreased a little. As a result, index x5 is 9 p. lower than the general CCI.

The source of consumer confidence improvement was the increase of economic expectations index by 10 p. in general and index of expected economic conditions in the country over the next year by 16 p. in particular. This occurred along with deterioration of expectations regarding changes in unemployment  by 6 p. to the level of autumn, 2010. At the same time, indices of inflationary and devaluationary expectations stabilized.
"Stabilization of economic situation along with favorable weather conditions in August led to the further optimism concerning economic perspectives of the country. At the same time, it hasn’t transformed into domestic demand increase so long as the risks stay high",- as the GfK Ukraine analysts comment.