WED, MARCH 25 2020-theG&BJournal- The survey conducted by the Central Bank of Nigeria (CBN), during the period February 24-March 3, 2020, and covering a sample size of 2,070 households, shows overall outlook was negative and pessimistic, driven by the declining fortunes of the economy.
Many are hoping that things get better in the coming quarter as they look to ramp up purchases on the back of 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 12 months.
According to the survey report, most respondents expect prices of goods and services to rise in the next 12 months, with an index of 22.9points. The major drivers are expected to medical expenses, education, telecommunication, savings, purchase of houses, and food and other household needs.
Majority of consumers also believed that the current quarter was not the ideal time to purchase big-ticket items. The overall buying conditions index for big-ticket items in the current quarter stood at 24.4points.
Overall buying intention index in the next twelve months stood at 32.5 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, indicating that respondents have no plans to make these purchases in the next twelve months.
With indices of 2.2and 11.7 points, respectively, consumers expect the borrowing rate to rise, but expect the naira to appreciate in the next 12 months.
The unemployment index for the next 12 months remained positive at 27.7 points in Q12020, indicating that consumers generally expect the unemployment rate to rise in the next one year.
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