Ulaanbaatar
B.Altantsetseg: Economy grows when consumer confidence index shows more optimistic results
Economy
Ulaanbaatar /MONTSAME/ Comparing household spending and purchase state to the previous year, real estate purchase is expected to be decreased while spending on traveling and buying automobiles keep on increasing, according to Consumer Confidence Index (CCI) Survey conducted by the National Research and Consulting Center Co .,Ltd.
Consumer Confidence Index measures the degree of optimism that consumers feel about the overall state of the country's economy and their personal financial situation. For instance, in the first quarter of 2019, the expected rate of inflation was estimated to be 4.4 percent. The expected inflation in the next year is 4.5 percent presumed by UB consumers while it is lower by 0.3 percentage points by the consumers in rural area. Consumers expect there will be no change in housing price in the next year. Most of the consumers or 40.8 percent expect no change in loan interest as well.
While 36.5 percent of consumers consider that USD exchange rate will be increased, reaching MNT 2655.4 on average in the next 6 months. As for condition of citizens’ purchase, as mentioned above, real estate purchase is decreased by 3.9 percent while spending on traveling and automobile purchase are increased by 5.8 percent and 1.1 percentage points respectively.
During the presentation, economist, researcher B.Altantsetseg said that economy grows when consumer confidence index shows more optimistic results. The reason is as business operations and income directly depend on market and economic conditions, product manufacturers benefit more when consumers’ optimism on economy is high besides their financial situation is good.
