Friday, June 22, 2018

Consumer spending outpaces income in Sverdlovsk region during first half of 2014

A recent report by the Federal State Statistics Service of the Sverdlovsk Region showed consumer spending outpaced income during the first half of the year.

Overall, income in the region increased by 3.8 percent over the same period of 2013 to reach $21 billion. Meanwhile, total expenses during the period increased by 4.3 percent over the previous year to reach $21.1 billion--an income-to-expense disparity of $100 million, Oblastnaya Gazeta reports.

The statistics service considers the region's gap in income and expenses a naturally-occurring phenomenon among developing regions.

"Saving the excess of expenditure over income is quite natural," the statement from the statistics service said, according to Oblastnaya Gazeta. "People spend money on vacation, travel, repair."

Meanwhile, the total income for Sverdlovsk residents during the month of June increased by 1.7 percent over the previous month to $3.84 billion. Total expenses for the month, however, climbed to $3.95 billion--7.4 percent greater than income received.

The outpacing of income to expenses in the region has led to a year-long decreasing trend in savings for Sverdlovsk residents. In the first six months of 2014, Sverdlovsk residents were able to save a total of $580 million--less than half of what was saved in the same period of 2013, Oblastnaya Gazeta reports.

Throughout the region, prices of consumer goods have increased in nearly all sectors of the economy. In June of this year, food prices rose 8.1 percent, and prices of alcoholic beverages increased by 9.4 percent compared to December 2013.

Analysts from the Institute of Economics attributed the increase in consumer product pricing to the sharp rise in the value of the dollar and euro. The growth rates of the dollar and euro have lead to increases in the price of global consumer goods without regard to the value and stability of currencies like the ruble, according to Oblastnaya Gazeta.

Analysts further predict that the third quarter of 2014 will bring even more income and expense disparity to the Sverdlovsk region. Experts are urging Sverdlovsk consumers to watch their spending habits and try to save.