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Consumer Confidence
Consumer Confidence June 2018
June 04, 2018 08:37

Consumer Confidence strengthened in May 2018. In this month, the Consumer Confidence Index (CCI) rose 1 percent to 99.5 from 98.5 after declining by 2.2 percent in the previous survey. Our latest survey reveals that consumers gave more positive assessments on current economic conditions and the state of the job market. In particular, consumer concerns on job scarcity eased (with the proportion of consumers citing this issue as a concern falling from 39.0 percent to 36.7 percent in May). In addition, consumer concerns on the high prices and scarcity of LPG also declined (down from 14.3 percent to 10.6 percent in May).

Of the two main components which make up the CCI, only one increased in May: the component measuring consumer sentiment toward current conditions, the Present Situations Index (PSI), climbed 4.0 percent to 84.7, as sentiment toward the current state of the economy and the job market improved. By contrast, the other main component of the CCI - the one measuring consumer sentiment toward the future (the Expectations Index or EI) – edged down by 0.7 percent to 110.6. The fall in this index reflects weaker consumer optimism toward the economy and the job market outlook over the next six months.

With consumers less upbeat on the national economic outlook, buying intentions for durable goods also declined in May. In our survey, 40.49 percent of consumers expressed plans to purchase a durable good over the next six months, or down from 41.59 percent in the previous month. Nevertheless, on a
yearly comparison, buying intentions for durable goods are still higher since only 39.50 percent of consumers expressed plans to purchase a durable good back in May 2017.

Consumer confidence in the government’s ability to carry out its duties weakened in the May survey. After decreasing 1.3% in the previous survey, the Consumer Confidence in the Government Index (CCGI) retreated 0.2% to 106.1 in May. Three components of the CCGI declined while two components increased. Nonetheless, four CCGI components are still above the neutral level of 100, thereby indicating that consumers are generally convinced in the government’s ability to carry out its duties.