Russia: Russian consumers are less pessimistic in Q2

Russia’s unemployment, real wages and economic activity are showing signs of a gradual improvement and so does private consumption. Moreover, the recent stabilization of the ruble and a drop in inflation have prompted Russian consumers to be less downbeat. According to the Federal Statistics Service (Rosstat), the consumer confidence indicator increased from minus 30 points in Q1 to minus 26 in Q2.

In a press release, Rosstat commented that the improvement in the indicator in Q2 reflected, “positive dynamics in all of its components.” Consumers were less pessimistic regarding both the current economic situation and the economic outlook in the next 12 months. In addition, respondents to Q2’s survey indicated that their current financial situations are better than a year ago and their personal financial prospects in the next 12 months had improved compared to Q1. This prompted more consumers to say that now is a good time to purchase big-ticket items.

FocusEconomics Consensus Forecast panelists expect private consumption to contract 0.7% in 2016, which is unchanged from last month’s projection. For 2017, panelists expect private consumption to expand 1.6%.