MON, 21 DEC, 2020-theGBJournal- The consumers’ overall confidence outlook was pessimistic in Q4 2020 standing at -14.8 index, according to the Central Bank of Nigeria’s (CBN) Q4 2020 Consumer Expectations Survey Report covering a sample size of 2,070 households drawn from 207 Enumeration Areas (EAs) across the country.
Respondents surveyed attributed the unfavourable outlook to declining economic conditions, family financial situation and declining family income.
The consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.5 and 28.9 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 CBN said.
The survey findings reveal most respondents expect prices of goods and services to rise in the next 12 months, with an index of 43.1 points. The major drivers are: savings, food & other household needs, Education, Purchase of Appliances/ durables, Purchase of Car/Motor Vehicle, and purchase of houses.
The overall buying conditions index for big-ticket items in the current quarter stood at 21.6 points, indicating 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 points.
Besides, overall buying intention index in the next twelve months stood at 29.9 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 and lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months.
They also expect borrowing rate to rise and anticipate the naira to appreciate in the next 12 months with indices of 12.2 and 3.9 points, respectively.
However, the unemployment index for the next 12 months remained positive at 36.9 points in Q4 2020, indicating that consumers generally expect the unemployment rate to rise in the next one year.
Meanwhile, in the Inflation Attitudes Survey Report for Q4 2020, the CBN finds that 60.8 per cent of the respondents believed that the economy would end up weaker, if prices started to rise faster than they do now.
8.4 per cent stated that it would be stronger, 12.8 per cent of the respondents believed it would make a little difference, while 17.9 per cent did not know.
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