Bulgaria Consumer Confidence Up in Q1 2010

Despite the general increase of consumer confidence of Bulgarians in April 2010 compared to January, the expectations are for continuing layoffs in the next 12 months, but with lower rates. File Photo

Bulgarian consumer confidence registered an increase in April 2010, particularly in urban areas, according to data published by the National Statistical Institute (NSI) on Monday.

There was a general increase in optimism in consumers' assessments and expectations compared with the opinions expressed three months ago.

Consumers' overall views on the current development of the country's general economic situation improved, going up 6.4% in comparison with January 2010.

Urban respondents showed a clear boost in confidence - up by nearly 9%. Rural consumers, however, showed a small improvement in their assessments and confidence – 1.5%.

Urban and rural consumers also gave a more positive assessment of their household financial situation, and the general economic situation in the country. Regarding unemployment, the expectations are for continuing layoffs in the next 12 months, but with lower rates.

The present economic situation in Bulgaria, however, continues to be seen as more unfavorable, especially by rural consumers, whose assessments contribute to the overall negative assessment. Urban consumers retain the same level of their confidence as in January 2010.

In addition, consumers’ April assessment shows financial situation of households had worsened in the last 12 months, more in rural areas than the urban ones.

Consumers continue to believe there has been a general increase in retail prices in the last 12 months, but predict a lower inflation over the coming year.

As for making a major purchase, such as buying a car or making home improvements, the data showed a slightly more optimistic return than in January 2010, but the outcome is more negative regarding the purchase of a new home.

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