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The MNI Russia Consumer Indicator fell sharply in November, led by a steep decline in respondents’ willingness to purchase a large household item and their expectations for future business conditions.
The Consumer Indicator decreased from 99.4 in October to 94.8 in November, the lowest level since the series started in March.
Both Current and Expectations Indicators declined in November. The Current Indicator fell 5.0% on the month to 94.3, close to March’s record low of 93.8. The Expectations Indicator fell to a record low of 95.1, a 4.4% decline on the month.
The Durable Buying Conditions Indicator declined significantly in November following October’s sharp increase.
Both Current and Expected Personal Finances rose slightly in November, following declines in the previous month.
Concerns over inflation worsened in November as the number of respondents who were dissatisfied with the current level of prices increased drastically, although inflation expectations in a year's time eased a bit.
Commenting on the data, MNI Indicators Chief Economist Philip Uglow said, “After a disastrous year for the Russian economy, consumer confidence finally cracked hitting its lowest level on record.”
“Younger people and the less well off have been hit particularly hard by the economic downturn due to a combination of high inflation and lack of suitable employment. Our survey shows that respondents don’t expect to see a turnaround in the economy any time soon, which is perhaps not too surprising given the recent negative comments from government officials who have admitted they have little idea on how to boost growth,” he added.
