Declining Economic Condition Worsens Consumer Confidence – CBN

The Central Bank of Nigeria (CBN) says consumers’ overall outlook was negative in the first quarter of 2020, as consumers were pessimistic in their outlook.
The Statistics Department of the CBN revealed in its Consumer Expectations Survey Report for Q1 2020, however that consumers had a positive outlook for the next quarter and the next 12 months.
Part of the report stated, “The consumers’ overall confidence outlook dipped in Q1 2020, as consumers were pessimistic in their outlook.
“The index at -0.3 point was 5.1 points lower than the index in the corresponding period of 2019.”
Respondents attributed this unfavourable outlook to declining economic conditions.
The consumers were, however, optimistic in their outlook for the next quarter and next 12 months with indices of 28.9 and 43.3 points, respectively.
It stated that this positive outlook could be attributed to the expected increase in net household income, expectations to save a bit and/or have plenty over savings and an anticipated improvement in Nigeria’s economic conditions in the next quarter and the next.
The CBN stated that most respondents expected prices of goods and services to rise in the next 12 months, with an index of 22.9 points.
The major drivers were medical expenses, education, telecommunication, savings, purchase of houses, and food and other household needs, it added.
It stated that the overall buying conditions index for big-ticket items in the current quarter stood at 24.4 points.
This indicated 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 12 months stood at 32.5 index points, indicating that most consumers did not intend to buy big ticket items in the next 12 months.