Consumer confidence in Estonia practically unchanged in February

Photo: Elmo Riig / Sakala

 Household confidence in Estonia did not change significantly in February, with the indicator falling to -5 from -4 in January, the fresh consumer barometer survey by the Estonian Institute of Economic Research ( EKI) shows.

A small improvement occurred in expectations regarding the outlook on the Estonian economy, EKI said. In February 35 percent of respondents predicted that the country's economic situation will improve over the next 12 months, 32 percent believed the situation would not change and 21 percent anticipated a turn for the worse.

Expectations deteriorated with regard to the labor market situation and the number of people who believe unemployment will grow somewhat over the next 12 months increased.

Significant differences were observed in confidence levels of respondents from different social groups. Confidence was higher among the more prosperous, younger people and men. For example, among respondents with the highest income the indicator was 13 points and it improved in comparison with the previous month, whereas the indicator for respondents at the lowest income level was -24 and it weakened over the past month.

Estonians' expectations of their own household's situation 12 months from now did not change in February and people who fear that the economic situation of their family will worsen still form a slight majority.

There is a strong correlation between expectations and current income. If of low-income families 13 percent expect the situation to improve and 38 percent to deteriorate, then of the families with largest incomes 34 percent expect things to change for the better and 12 percent, to deteriorate.

Most families, 50 percent, are making ends meet, 39 percent are able to save some money and 10 percent live either on previous savings or on credit. Of the families at the lowest income level every fifth was experiencing financial difficulties.