In the second quarter of 2020, consumer sentiment decreased sharply, according to the SGH IRG survey. The value of the household condition index (IRGKGD) decreased to the level of minus 50.2 points. This means a drop by 40.5 points, the highest in the history of the survey.
The authors of the report claim, that, for comparison, during the financial crisis of 2008-2009, the value of IRGKGD decreased over four quarters (in total) by approx. 35 points.
The values of all components of the IRGKGD index have decreased. Fears of unemployment have increased the most – the value of the balance has increased by almost 63 points.
Households expect a worsening of their financial situation (the value of the balance decreased by 36.8 points) and a weakening of the ability to save (by 18.2 points).
(PAP)