MNI Russia Consumer Sentiment Indicator: Russian Consumer Sentiment Dips Slightly In December - Households Shun Car Purchases As Finances Deteriorate Further

The MNI Russia Consumer Sentiment Indicator slipped to 70.1 in December from 70.8 in November, as panellists turned increasingly pessimistic about their financial situation. Sentiment is currently running just beneath the 2015 average but is 15% below the series average.
 
Four out of the five components of the CSI declined between November and December. Current Personal Finances led the way falling 4.2% on the month to the lowest since July, while expectations for the next three months declined also, albeit by a smaller 1%. Durable Buying Conditions were down 0.7%. Views on business conditions were mixed with the outlook for one year ahead down 2.1% on the month while expectations for five years increased 2.5%.
 
Car sales in Russia have plummeted this year and the survey suggests this weakness will continue. Car Purchase Expectations fell to 80.2 in December from 81.9 in November, the lowest on record.
 
Inflation expectations among our panel remain elevated, with price pressures as well as the precarious rouble preventing the Central Bank of Russia from cutting rates at its December meeting.
 
The Employment Outlook Indicator dipped slightly to 64.4 in December from 64.9 in November. Unlike the components of the CSI, it has been trending down since the summer, although there has been some tailing off in the past couple of months.
 
Commenting on the latest survey, Philip Uglow, Chief Economist of MNI Indicators said, “Sentiment is hovering just above record lows, but encouragingly has steadied in recent months and is only 0.7% down since the start of the year. It’s low but for now the positive takeaway is that it shows little sign of falling any further, chiming in with evidence from our business survey which has also pointed to a stabilisation.”

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