Page 19 - RusRPTNov18

Russia's consumer confidence index dropped to -14 in the second quarter of 2018 . There was an improvement in expectations regarding the country's economic situation (up 1 point to 2) while households' personal finances outlook was flat (at -2). Meanwhile, the index measuring changes in personal finances during the last 12 months was unchanged at -9; and the gauge of the Russian general economic performance over the past year decreased 1 point to -8. The Major Purchase index increased 1 point to -22. Consumer Confidence in Russia averaged -14.63 Index Points from 1998 until 2018, reaching an all time high of 1 Index Points in the third quarter of 2008 and a record low of -59 Index Points in the fourth quarter of 1998.
2.10 Putin & government’s popularity
The popularity Russian president Vladimir Putin took a hit following the approval of hikes to retirement ages this summer as his approval rating dropped from this year’s of 82% set in May to 66% in September, according to independent pollster the Levada Center most recently survey for September.
Putin popularity was clearly affected by the changes in retirement ages which were 60 years for men and 55 for women, set in USSR back in 1930's when average life expectancy was 40 years, but has been increased to 65 for men and 60 for women.
The “approval” poll results were highly anticipated after an earlier “trust” poll released earlier this month found the population’s trust in Putin tumbled 20pp to 39% in September this year from 59% in November 2017, according to independent pollster the Levada Center. Russians have been upset as in effect Putin broke his social contract with the population. The increase in retirement ages is the first time that Putin has directly laid the burden of Russia’s increasing austerity on the shoulders of voters. An increase in VAT from 18% to 20% was pushed through in parallel to the changes in retirement ages.
However, his approval rating has held up much better. Putin’s approval dropped 12pp in July to 67% following the announcement of the pension age reform, but has stayed roughly the same since, falling only 1pp in September to the current 66%.
The current approval rating is amongst the lowest Putin has had since taken office in 2000 as his approval rating has consistently been in the 70s or 80s
19 RUSSIA Country Report November 2018 www.intellinews.com