Consumer Expectations Index Positive for the First Time Since 2007

The Consumer Expectations Index (CEI), which indicates what citizens expect regarding changes in their household financial situation as well as the overall economic situation in Croatia over the next year, reached a value of 0.8 points in February, marking the first positive result since 2007, according to an analysis by Raiffeisenbank Austria (RBA).

This index recorded an improvement of 2.7 points in February compared to the same month last year.

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“The rise of the index into positive territory was supported by increasing expectations related to improvements in their household financial situation over the next 12 months, with the response index jumping from 3.3 in January to 6.1 in February,” RBA noted in its commentary on recently published data from the Croatian National Bank (HNB).

According to the latest data from HNB from the ‘Consumer Confidence Survey’, all three composite consumer indices show improvements. However, apart from the CEI, the other two have not yet reached positive values.

The Consumer Confidence Index (CCI) recorded single-digit negative values for the first time since January 2000, standing at minus 9.7 in January and minus 6.2 points in February.

“For this index as well, a significant positive contribution comes from rising expectations related to changes in the financial situation of the respondents’ households, while worsened expectations regarding the unemployment rate over the next year have halted a significant recovery of the mentioned index,” RBA analysts stated.

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The Consumer Sentiment Index (CSI) also recorded an improvement, moving from minus 15.2 to minus 12.6 points in February.

“At the same time, consumer sentiment regarding changes in their household financial situation over the past 12 months and changes in the overall economic situation in Croatia during the same period, as well as expectations regarding potential consumer investments in durable household goods, have improved,” RBA analysts concluded.