Consumer confidence hits record high

The consumer sentiment index in Romania hit a record high of minus 2.5 in Q1, up 1.5 points from the same time last year. This index gauges private consumption and consumption intentions. It usually peaks in the spring, but this year’s growth is substantial, practically the highest since measurements first started. The consumer sentiment index is calculated by market research company GfK Romania in a periodic survey called “Consumer sentiment barometer” partly funded by the European Union. In spite of the strong growth, GfK’s director Cosmin Alexandru does not believe the trend can be sustained. “People begin with a certain amount of confidence first but then become more realistic and adjust their expectations accordingly six months through the year. This growth is seasonal and not sustainable in time. The consumer confidence index could become positive in three or four years’ time, while it is already positive in the Eastern countries that have just joined the EU,” Alexandru said. The survey data verify the upbeat statistics regarding the population consumption in the first quarter: retail sales went up 20%, while producers of beer, cosmetics, chocolate, soft drinks and even cars saw their sales surge. ZF