Throughout 2018, the consumers have not regained confidence in their economy in 2017. The Romanians became reluctant on the back of monetary market tensions (ROBOR growth) and the uncertain economic situation. Therefore, the Climate Consumption indicator measured by GfK is still negative, located in the pessimism area (-20.7).
At the European Union level, consumers are concerned about lower living standards - the protests of the French "Yellow Vests", or racism in Italy, rising oil prices and Brexit - events that have led to lowering confidence index to -6.
The indicator of the confidence of the Romanian consumers is determined by pessimistic forecasts in most chapters. Only 11% believe in a positive evolution of the economy and the same rate is expected to fall in the next year.
However, the Romanians look a little more optimistic when it comes to expectations about the situation of their own finances. Nearly a quarter of them trust that this will look better, compared to 19% a year earlier.
Even though the FMCG and the electro-IT markets have seen increases in 2018 *, consumers are reluctant to buy long-term durable goods. For 2019, 4 out of 10 Romanians (42%) say they will shrink their budget for purchases such as furniture, washing machines, etc., almost as many who say they will maintain their budget for such acquisitions 41%). Only 10% of Romanians have expressed their intention to invest more than before.
From a wider perspective, household consumption of consumer goods will be maintained by the increase in households' disposable income, which can be offset by tightening credit terms.