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The consumer barometer indicator of the Estonian Institute of Economic Research on the month of May demonstrated that the consumer confidence indicator was at –5 in May; in comparison to the month of April, the indicator rose by six points. The confidence indicator has also risen above the historic average – the average of the years 1992-2010 was –11 points.

From among four consumer confidence indicator components, the remarkable improvement in May took place in the unemployment factor and in assessments on Estonia’s economic outlooks in the next 12 months.

41% of those polled by the institute expected that the economic situation would improve in the next 12 months. 28% expected the situation to stay the same while 20% of respondents predicted a deterioration.

There were no changes in respondents’ expectations on the economic situations in their own households in the next 12 months.

Residents assessed that the unemployment situation would improve in the next year (the balance in April was – 10 while in May –2). While 54% of residents estimated in March 2009 when the economic crisis peaked that the unemployment rate would surge significantly in the next 12 months, now there were only 4% of such individuals.

Due to a fall in incomes and the high unemployment rate, the residents’ saving capacity is low and 64% of respondents estimated that it would not be likely that they would save money in the next 12 months. Many households are keeping their financial situation balanced due to significant reduction in spending. The outlook on purchasing durable goods is still bad, reported the Institute of Economic Research.