Consumer overall confidence rises – CBN

The Central Bank of Nigeria (CBN) has said consumers’ overall confidence outlook rose in the third quarter (Q3) 2019, as more consumers were optimistic in their outlook.

The “Consumer Expectations Survey report” that was released on Tuesday noted that the index at 3.8 points was 2.3 points higher than the index in the corresponding period of 2018.

According to the CBN survey, respondents attributed this favourable outlook to improved family income and family financial situation

The survey noted, “The consumer outlooks for the next quarter and next 12 months were positive at 22.8 and 31.5 points, respectively.

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“This outlook could be attributed to the expected increase in net household income, anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next 12 months.”

The survey noted that most respondents expect prices of goods and services to rise in the next 12 months, with an index of 25.0 points.

According to the report, “The major drivers are, purchase of appliances/ consumer durables, savings, education, purchase of car/motor vehicle, purchase of house and transportation”

On buying outlook, the survey by CBN stated that, “The overall buying conditions index for big-ticket items in the current quarter stood at 30.3 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 & lot.”It explained that overall buying intention index in the next 12 months stood at 36.2 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months.

According to CBN survey, the buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, indicating that respondents have no plans to make these purchases in the next 12months.

It explained with indices of -6.2 and 13.9 points, consumers expect the borrowing rate to fall but expect the naira to appreciate in the next 12 months.

The Q3 2019 Consumer Expectations Survey (CES) was conducted during the period September 16-27, 2019, covering a sample size of 2,070 households drawn from 207 Enumeration Areas (EAs) across the country, with a response rate of 98.3 per cent.

 “respondents’ distribution by educational attainment showed that 7.3 per cent had a university education, 11.7 per cent had higher non-university education, while 27.8 per cent had senior secondary school education.

“Respondents with junior secondary and primary school education accounted for 5.0 and 19.3 per cent, respectively, while those with no formal education accounted for the balance of 28.9 per cent”, the apex bank explained.