Croatia: Alarming data about consumer confidence

Croatia: Alarming data about consumer confidence

A consumer confidence survey conducted in April by the Croatian National Bank (HNB) shows that consumer confidence indices have seen their strongest monthly and annual decreases since the bank started monitoring them.

The consumer confidence index in April was -32.2 points, which is its lowest level since May 2014, while the consumer expectations index was -42.1 points, its lowest level since August 2009. The consumer sentiment index was -23.5 points, the same as in June 2017.

The composite consumer confidence index in April dropped by 22.3 points from March and in relation to April 2019, it was 27.4 points down.

These are the strongest monthly and annual changes in consumer confidence indices since the HNB started monitoring them, analysts of Raiffeisen bank Austria have said.

The composite consumer expectations index, which mostly refers to worsened expectations regarding the overall state of the economy in the next 12 months, dropped by 30.4 points on the month and by 39.5 points on the year. Both decreases are historically the greatest.

The composite consumer sentiment index, which points to fluctuations in the financial status of households in the last 12 months and changes in expectations regarding the economic situation and investments, dropped by 12 points on the month. The last time the index dropped this much was in April 2002, when the monthly decline was 19.6 points. Compared to April 2019, the index dropped by 8.6 points, for the first time since February 2013.

Raiffeisenbank analysts say that the Croatian economy, too, has been affected by the coronavirus pandemic and is facing a period of lower economic activity and recovery./ibna