Loan supported household consumption // Demand monitoring

The nominal volume of consumer spending on the purchase of goods and services using Sber cards from July 3 to July 10 increased by 10.7% in annual terms against 11.7% a week earlier, Sberindex records. Romir also notes similar dynamics: from July 4 to July 10, the average weekly nominal expenses of citizens decreased by 0.7% compared to the previous week, and their annual growth decreased to 8.3% against 13.6%. It should be noted that inflation in annual terms in June slowed down to 15.9% from 17.1% in May, mainly due to the strengthening of the ruble and low consumer activity, according to the Ministry of Economy. According to the Central Bank, the total debt of households in May decreased for the second month in a row (by 48 billion rubles, or 0.2% for the month against 0.9% in April), and in annual terms, its growth was minimal over the past year (see chart). “Credit contraction is a withdrawal of money from total domestic demand (compared to the pre-crisis trend by about 1.2-1.3 trillion in three months). The negative impact of credit on demand is one of the key factors… .

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