Consumer confidence in Ukraine in June fell after a long period of growth, according to a survey conducted as a part of a joint project of GfK Ukraine Company and the International Center of Policy Studies (ICPS).
"The wave of consumer optimism is falling. Consumer confidence index growth, which was seen for ten months consecutively, ended with a fall of 2.6 notches, to 94.5 notches in June 2010. The reason for the worsening of consumer confidence was economic expectations, which fell by 6.3 notches, to 102.6 notches," a press release on the survey reads.
"The positive impact of the new government in the country on consumer confidence of Ukrainians is coming to naught. This is in line with the fall in confidence in the president, the Regions Party and the authorities seen in June 2010," ICPS said.
The researchers said that the largest fall was seen in the economic expectations index.
"The worsening of economic expectations in June 2010 affected the rise in inflation expectations and the unemployment rate. Inflation expectations index added 2.1 notches, narrowing to 175.7, while the unemployment expectations index grew by 4.9 notches, to 106.9," reads the release.
The ICPS said that the strict budget policy of the new government, the plans of authorities to increase the pension age, a draft Tax Code that threatens small business and the expected increase in gas prices and utility service tariffs had all affected economic and inflation expectations in Ukraine.
The ICPS said that the worsening of unemployment rate expectations could be linked to the difficult situation in the metals sector.
Respondents for the surveys are selected using professional principles for sociological surveys.
