Russia Consumer Sentiment Highest Since August 2015 - MNI Russia Consumer Sentiment Indicator 71.5 In Apr Vs 71.2 In Mar

Consumer sentiment rose for the third consecutive month in April, albeit at a very gradual pace, with consumers a little more pessimistic about their current situation but slightly less so about their future prospects.
 
The MNI Russia Consumer Sentiment Indicator increased to 71.5 in April from 71.2 in March. Although it is below last year’s average of 71.6, it has improved 2.8% from October last year when it hit a record low.
 
While the headline indicator remains significantly below 100, implying pessimists outnumber optimists, it looks as though sentiment has bottomed out around the 70-mark and the long-term decline has ended.
 
Three of the five components that make up the MNI Russia Consumer Sentiment Indicator increased in April. Business Conditions over both a 12-month and 5-year horizon rose to 65.6 and 77.7 respectively, from 64.5 and 76.8 in March. In addition, Expected Personal Finances increased 1.7% in April to 67.9 from 66.8.
 
The Interest Rate Expectations Indicator fell to 149.8 in April from 152.0 in March, the lowest since June 2015. When asked how they expected rates to change over the next year, 70.7% of respondents thought they would rise, either a ‘little higher‘ or ‘much higher‘, down from 74.2% last month.
 
The environment for car buying picked up to the highest level since January, with the Car Purchase Indicator rising 4.2% to 65.8 from 63.1 last month. Still, confidence in the car market remains very weak. April‘s improvement was led by both higher willingness to purchase a car and lower gas price expectations.
 
The Current Price Satisfaction Indicator rose by 5.4% to 47.0 from 44.6, the highest since August 2015. However, it remains heavily depressed and highlights the deep dissatisfaction among consumers towards prices amid difficult economic conditions.
 
Commenting on the latest survey, Philip Uglow, Chief Economist of MNI Indicators said, “The third consecutive increase in the MNI Russia Consumer Sentiment Indicator supports the view that the Russian economy could well have turned the corner.” 
 
“Still, pessimists outnumber optimists by a significant margin with sentiment down nearly 30% from its peak in August 2013."

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