Ukrainians' economic sentiment index up 2.7 points in June – study

Economic sentiment index in Ukraine in June 2018 increased by 2.7 points, to 65.6 points (on a scale from zero to 200) compared with the May index.

At the same time, the indicator grew by 6.2 points year over year, according to a monthly survey by GfK Ukraine, the Segodnya newspaper wrote.

Index of the current personal material condition showed the greatest positive dynamics, having increased by 8.8 points compared with May 2018, up to 59.6 points.

"This can be due to the gradual growth in real incomes of the population, as well as with the fact that the summer period sees price drops for basic food products," GfK Ukraine analysts said.

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The index of expected changes in personal financial situation rose by 6.2 points to 67.3 points, while the index of the current condition in monthly terms increased in general by 5.1 points to 65.5 points.

Ukrainians in June 2018 had optimistic expectations regarding the development of the country's economy for the next five years as the relevant index grew from May by 3.3 points to 56.4 points.

Ukrainian citizens are also optimistic about the further dynamics of price growth since the inflation expectations index fell by 3.4 points, to 187 points.

At the same time, the indicator of the feasibility of large purchases slowed the growth in June in comparison with May by 1.5 points to 71.3 points.

Although the index of economic expectations has been growing in general for the fourth month in a row, having increased by 1.1 points in June to 65.7 points, some of its components showed a serious decline, the analysts said.

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In particular, index of the expected unemployment dynamics rose by 8.1 points, to 133.5 points, after the positive trend in May, when this indicator fell by 5.3 points. The negative trend was also reported with regard to the index of the expected growth in the country's economy in the coming year as it fell by 6.1 points in June to 56.4 points.

"Such sentiments may be the result of uncertainty regarding the provision of the next IMF tranche," reads the study.

Ukrainians' expectations with regard to the dollar rate in the next three months deteriorated as well: the devaluation expectations index rose by 1.4 points to 150.9 points.