Consumer confidence is at its highest level since October 2010, rising slightly for the second consecutive month. The recovery seen since early 2013 appears to be firming, despite the shock dealt by developments in Cyprus in April. The improvement recorded in June is mainly due to an increase in positive expectations about the current economic situation.
The Consumer Climate Index – CCI (62.8, +3.5 points) registered its highest value of the past 32 months (11/2010-6/2013). The improvement in June was chiefly due to the impressive rise (+9.3 points) of the Current Economic Conditions Index – CECI (48.6) in the space of just one month. On the other hand, the Consumer Expectations Index – CEI (72.2) remained more or less unchanged (-0.3 points) relative to the previous month.
Observing the course of the relevant index since Autumn 2012, it emerges that consumer confidence is improving slowly but steadily, with the exception of the temporary decline last April. Over the past eight months (11/2012-6/2013) the index has gained a total of 17.5 points.
Propensity to buy (72.9, +10.7 points relative to May) reached its highest level since August 2010. Three in 10 respondents (31%) believe that the current period is appropriate for major purchases of household equipment (furniture, electrical appliances, etc.). This represents the highest percentage recorded in the past 46 months (9/2009-6/2013). Assessments of personal financial situation (24.3) rose markedly (+7.9 points) relative to the previous month. The proportion of citizens who believe that their personal financial situation has deteriorated during the past 12 months fell by 7% (from 86% in May to 79% in June). It is thus clear that dissatisfaction with the economic situation among households remains at very high levels, despite the improvement seen in the current month.
Expectations of personal financial situation (52.3) reached the highest levels since October 2010, registering a marginal increase (0.3 points) relative to May. However, despite the significant improvement during the past four months, the majority of citizens (57%) express pessimism about the coming year. Expectations for the economy (62.3) rose slightly (0.8 points) relative to the previous month. Almost 1 in 5 respondents (19%) anticipate an improvement in the economy over the next 12 months. Expectations for the economy over the next five years (102, -2.1 points relative to May) for another month remained over the 100-point mark. This means that, with regard to the economy’s long-term prospects, the proportion of citizens giving positive replies (38%) is higher than the corresponding proportion giving negative ones (36%).
Expectations for saving improved significantly. The proportion of citizens who consider it likely that they will be able to save some amount of money in the year ahead reached 8%, the highest level since July 2012, marking an increase of 3% relative to the previous month. Lastly, assessments of unemployment and price increases changed little. One in 10 of respondents (10%, -2% relative to May) expect a drop in unemployment over the next 12 months, whilst roughly 1 in 2 (51%, -2% in one month) anticipate an increase in prices during the same period.
