OREANDA-NEWS. October 17, 2012. Decrease of consumer confidence of Ukrainians was observed in September. The September consumer confidence index (CCI) is 81.8 which is 4.8 p. lower than in August. The deterioration was caused by all the index components except the Index of Propensity to Consume (х5). This is proved by the consumer confidence survey in Ukraine, conducted by GfK Ukraine on a monthly basis.

In September 2012 the Consumer Confidence Index (CCI) decreased by 4.8 p. to 81.8. 

Index of Current Situation remained stable and fixed on the level of 80.6. The components of this index changed in the following way:
Index of Current Personal Financial Standing (x1) lost 3.2 p. and reached 80.5;
Propensity to Consume (х5) gained 3.2 p. to 80.7.

Economic Expectations of the population fell by 8.1 p. to 82.6. The components of this index changed as follows:
Index of Expected Changes in Personal Financial Standing (х2) lost 6.8 p. to 88;
Index of Expected Economic Conditions in the Country Over the Next Year (х3) fell by 11.9 to 76.6;
Index of Expected Economic Conditions in the Country Over the Next Five Years (х4) decreased by 5.6 p. to 83.3.

Expectations regarding changes in unemployment increased in September: the respective index is 127.4 which 5.7 p. higher than in August. Moreover, negative dynamics in inflationary expectations were observed: index value increased by 3 p. to 185.2. The index of devaluationary expectations of Ukrainians grew by 7.3 p. to 142.1.

The following key trends were observed in September:
Fluctuations in the dollar exchange rate in early autumn were likely to be the main factor behind the deterioration in consumer confidence. Devaluation expectations index increased by 7 p., a record growth since May that pulled inflationary expectations index. As a result, the index of expected economic conditions for the next year demonstrated the largest decrease which again was the lowest of all components of Consumer Confidence Index. At the same time, propensity to consume increased, which often is a positive response to the devaluation expectations.
As always under devaluation anticipation, worsening of consumer confidence was especially vivid among the economically active population aged 45 years, the richest and the poorest in cities with population over 500 thousand residents and in the South. 

"Citizens wait for the completion of the election campaign with growing apprehension, they react nervously to the slightest change in the exchange rate of US dollar to the local currency. Bad news about the state of the global economy and the negative forecasts from Ukrainian economists do not improve the economic expectations of Ukrainians”, as analysts of GfK Ukraine commented.