Russia: Pessimism remains among Russian consumers toward the end of 2015
January 15, 2016
Rising pessimism continued among Russian consumers in Q4, mainly due to a more negative assessment about both the state of the economy and the country’s economic outlook. According to the Federal Statistics Service (Rosstat), the consumer confidence index fell from minus 24 points in Q3 2015 to minus 26 points in Q4. The result marked the lowest level since the first quarter of 2015.
The drop in the final quarter of 2015 reflected that consumers—most of them middle-aged—were more pessimistic regarding the current national economic situation, in particular their personal financial situation as well as the regarding the conditions to make major purchases. The majority of respondents to the survey also showed that they were more pessimistic regarding the national economic outlook, in particular their own financial prospects in the next 12 months.
The result of a low morale among Russian consumers is mainly the result of high inflation, stagnant wages and rising unemployment. Unemployment remained elevated in December and averaged 5.6% in 2015, which was above the 5.2% registered I 2014.
Author: Ricardo Aceves, Senior Economist