OREANDA-NEWS. March 16, 2012. The deterioration of consumer confidence of Ukrainians was observed in February. The February consumer confidence index (CCI) is 76.7 which is 5.8 p. less than in January. The drop of consumer confidence was primarily caused by worsening of index of the expected economic conditions in the country over the next year: the respective index lost 10.3 p. in general while its decrease in villages reached 17 p. This is proved by the consumer confidence survey in Ukraine, conducted by GfK Ukraine on a monthly basis.

In February 2012 the Consumer Confidence Index (CCI) decreased by 5.8 p. to 76.7. 

Index of Current Situation decreased 4 p. and reached 75. The components of this index changed in the following way:

Index of Current Personal Financial Standing (x1) has fallen by 6.3 p. to 74.8;
Propensity to Consume (х5) lost 1.8 p. and reached 75.1.

Economic Expectations of the population decreased by 7 p. to 77.8. The components of this index changed as follows:

Index of Expected Changes in Personal Financial Standing (х2) lost 5.8 to 88.3;

Index of Expected Economic Conditions in the Country Over the Next Year (х3) decreased by 10.3 to 67.6;

Index of Expected Economic Conditions in the Country Over the Next Five Years (х4) dropped by 5 p. to 77.5.

At the same time, expectations regarding changes in unemployment grew in February: the respective index reached 134.7 which is 6.1 p. higher than the index value in January. Moreover, pessimistic inflationary expectations were observed: index value increased by 3.3 p. to 186.8. The index of devaluationary expectations of Ukrainians increased insignificantly by 0.1 p. and stopped on the level of 121.1. 

The following key trends were observed in February:

The main reason of consumer confidence deterioration in February was anomalous frost which has resulted the death of winter crops and has influenced negatively Ukrainian retail, especially open markets. The frost led to the reduction of CCI in villages by 10.5 points, first of all because of index of expected economic changes in the country over the next year which lost 17 points. Index of expected changes in unemployment in villages rose by 18 points in February.

The deterioration of consumer confidence primarily affected Ukrainians aged 31-59 which showed CCI decrease by more than 8 points, while the index drop among youth aged 15-30 was insignificant.

In February, the differentiation of consumer confidence indices by regions significantly increased. The difference between South the leader and West the outsider reached 24 points after CCI decrease by 17 points and index of expected changes in unemployment increase by 28 points in the western part of Ukraine.