By Andrei Skvarsky.
Deutsche Boerse-owned think tank MNI says that overall consumer sentiment in Russia bounced back moderately in June for the first time in five months but was still lower than a year ago, and that consumers were generally pessimistic about their anticipated financial status in a year’s time.
Respondents in the latest of monthly polls in Russia conducted in June by MNI’s London-based division MNI Indicators were slightly more confident about their finances after consumer sentiment plunged to its lowest point since the firm launched the surveys early in 2013.
Russians were buying more household goods, and those who were in a position to buy big ticket items made up the largest proportion since February, the poll suggests.
The average Russian was also more confident about the country’s current business climate and more hopeful about its business conditions in one year’s and five years’ time.
Yet the overall picture remained less than radiant, according to MNI Indicators. Respondents’ expectations of their financial situation in a year’s time hit the lowest point recorded in the surveys.
Dissatisfaction with the current level of prices increased sharply in June, and inflation expectations reached the highest level since the polls were launched. So did fears that interest rates on car and home loans would go up in the coming 12 months.
“The small recovery in consumer sentiment following four consecutive monthly falls to a record low in May is welcomed, although it’s too early to judge if we’ve reached the bottom. While some slightly brighter spots can be found in recent economic data, overall the economic backdrop remains gloomy,” said MNI chief economist Philip Uglow.
“The Russian central bank’s plans to tame inflation have been de-railed so far this year by the sharp devaluation in the rouble. Critical to getting on top of inflation is anchoring expectations, but our survey shows inflation expectations are at their highest since the survey started in early 2013, making governor [Elvira] Nabiullina’s job even more difficult.”
At the same timeover the short and long term, although overall consumers’ views on business remained pessimistic. MNI Indicators
Their desire to purchase big ticket items rose to the highest since February.
they though their expectations for the next 12 months dropped to the lowest level on the record of MNI Indicators, which launched its surveys in March 2013.
given the significant weakening in growth and ramifications of Russia’s military action in Crimea.
Philip Uglow, Chief Economist at MNI Indicators, highlighted that: “The small recovery in consumer sentiment following four consecutive monthly falls to a record low in May is welcomed, although it’s too early to judge if we’ve reached the bottom. While some slightly brighter spots can be found in recent economic data, overall the economic backdrop remains gloomy.”
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