The Central Bank of Nigeria (CBN) has said that consumers’ confidence dropped in the third quarter as consumers were pessimistic in their outlook.
The index at -21.2 point was 25.0 points lower than the index in the corresponding period of 2019. Respondents attributed this un-favourable outlook to declining economic conditions, family financial situation and declining family income.
The apex bank explained that the consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.1 and 30.5 points, respectively.
“This positive outlook could be attributed to the expected increase in net household income, an anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next quarter and the next 12 months,” he said.
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It said most respondents expect prices of goods and services to rise in the next 12 months, with an index of 36.2 points. The major drivers are: savings, Purchase of Car/Motor Vehicle, Purchase of Appliances/ durables, Education, food & other household needs and purchase of houses.
“The overall buying conditions index for big-ticket items in the current quarter stood at 20.1 points. This indicates that majority of consumers believed that the current quarter was not the ideal time to purchase big-ticket items like consumer durables, motor vehicles and house and lot”.
“Overall buying intention index in the next twelve months stood at 29.7 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months. The buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next 12 months”.
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