Bulgarians' Consumer Confidence Up 8% Jul 2012

In July 2012, the total consumer confidence of Bulgaria's urban population has increased by 9.1%. File photo

In July 2012, the total consumer confidence indicator in Bulgaria increased by 7.8 percentage points compared to its April level, according to data published by the National Statistical Institute (NSI) Monday.

For the urban population the increase is 9.1 percentage points and for the rural population it is 4.6 percentage points.

The consumers' opinions of the development of the general economic situation in the country over the last 12 months and the expectations about the next 12 months are less negative than they are in the previous survey.

In comparison with April, a drop of the pessimism in consumers' assessments about changes in the financial situation of households over the last 12 months and the expectations about the next 12 months is also observed.

In July, those living in the cities considered the budget of their households currently to be relatively better in comparison with 3 months earlier (an increase of the balance indicator by 7.4 percentage points), while the rural population' situation was reported as deteriorating.

The total assessment of conditions for making savings in the present economic situation in the country continues to be unfavorable, but certain improvement is expected in the next 12 months.

The consumers' opinion is that over the last 12 months there has been an increase of consumer prices but with a lower rate and inflation expectations are preserved for the next 12 months. Regarding unemployment in the country in the next 12 months the expectations are shifting towards preserving the current rate or a slight reduction in it.

The last inquiry registers a more optimistic assessment of the present situation when it comes to making major purchases of durable goods1. In July, an increase of the balance indicator regarding the intentions of such purchases in the next 12 months was recorded as well. The balance assessments of making expenditures on "home improvement" and the intentions of "buying a car" and "buying or building a home (or vacation home)" in the next 12 months are also higher.

The consumer confidence indicator is an arithmetic mean of the balances of the expectations about the development over the next 12 months of the financial situation of households, general economic situation, savings and unemployment, as the last is taken with a negative sign.

The survey is a part of the harmonized program of European Union for business and consumer surveys and it is representative for the population of 16 years and older.

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