In line with unfavorable macroeconomic trends and poor forecasts for 2013, the GfK Consumer Confidence Index recorded a further decline in December 2012.
The component measuring consumption propensity fell from 40 points in September to 36 points in December, confirming the prevailing recessionary mood among consumers. The continuous decline in consumption propensity in 2012 also indicates the process of household deleveraging that GfK recorded in earlier studies.
The index component measuring the assessment of the current financial situation fell by four points, which may reflect consumer frustration in a month when seasonal pressure on consumption typically increases. Expectations for future income remained unchanged compared to the previous measurement.
The index was obtained through a survey of attitudes on a representative sample of the population (N=1000) of the Republic of Croatia. The index scale ranges from 0-100, with values above 50 representing an upward phase of the economic cycle.
