Estonian Consumer Confidence Rises in June From 4-Year Low
Estonian consumer confidence rose in June from its lowest level in more than four years on improving expectations about state and personal finances, indicating the Baltic economy may avoid a recession.
The consumer confidence index rose to minus 16 from minus 19 in May, the lowest since December 2003, the Tallinn-based Konjunktuuriinstituut said today on its Web site.
Confidence of Estonian consumers, boosted by entry into the European Union in 2004, has slid after hitting record highs in January 2007 as the country's property sector cooled, banks set stricter lending terms to avoid overheating and inflation accelerated cash advance in one hour.
Rising investments may signal the Baltic economy is turning around after its economic expansion almost stalled in the first quarter to 0.1 percent, the weakest in the European Union, Maris Lauri, chief macro analyst with Hansabank Markets in Tallinn, said earlier this month.
Copenhagen-based Danske Bank A/S and London-based Capital Economics Ltd. forecast a full-year contraction this year after 7.1 percent growth in 2007.