Estonia consumer confidence at the highest level in three years
26.08.2010, 10:09Estonian consumer confidence improved to -1 in August, the highest level in three years, the Estonian Institute of Economic Research said on Wednesday.
The confidence figure is the best since July 2007, when the index reading was 3. The consumer confidence index showed a reading of -3 last month, the institute said.
Consumer confidence was -1 in August and improved by two points from July. Of four components of behind the consumer confidence index (household's financial situation, Estonia's economic situation, unemployment and saving for the next 12 months), the August showed an improvement in terms of household situation, economic situation and saving plans for the next 12 months. Assessment of unemployment was affected by the arrival of the autumn period and lower expectations in comparison with summer.
43% of respondents say the country's economic situation will improve in the next 12 months, 25% expect the situation to remain unchanged and 24% said it will worsen.
20% of respondents expect unemployment to continue growing while 39% expect it to fall. A year ago the figures were 60% and 8%, respectively.
39% of respondents said they were able to save, 49% said they earn as much as they spend while 11% said they lived on fromer savings or were chronically in debt. Many households said they make ends meet only thanks to having drastically cut spending.
32% of respondents said the prices were going to increase in the next 12 months. A year ago, only 5% believed so. According to researchers, such rapid growth is directly attributable to the upcoming euro arrival.