Report Reveals Rise in Consumer Confidence

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Hamid Ayodeji

Consumers’ overall confidence outlook rose in the third quarter of 2019, as more consumers were optimistic in their outlook.

The Central Bank of Nigeria (CBN), stated this in its “Consumer Expectations Survey Report for Third Quarter 2019,” a copy of which was posted on its website.

According to the report, the index at 3.8 points was 2.3 points higher than the index in the corresponding period of 2018.

Respondents attributed the favourable outlook to improved family income and family financial situation.

Furthermore, the report showed that consumer outlook for the next quarter and next 12 months were positive at 22.8 and 31.5 points, respectively.

This 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 12 months.

The outlook on price change in the next 12 months showed that most respondents expected prices of goods and services to rise in the next 12 months, with an index of 25 points. The major drivers were: purchase of appliances/ consumer durables, savings, education, purchase of car/motor vehicle, purchase of house and transportation.

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 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.

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

“The unemployment index for the next 12 months remained positive at 21.8 points in Q3 2019, indicating that consumers generally expect the unemployment rate to rise in the next one year,” it added.