Consumers’ Confidence in Nigeria’s Economy dipped in Q3 2020

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A survey of the Central Bank of Nigeria has shown that consumers’ confidence in the economy dropped in the third quarter of the year.

The survey revealed that consumers’ overall confidence outlook dipped in Q3 2020, as they were pessimistic in their outlook.

The details of the findings were disclosed in the CBN’s ‘Consumer Expectations Survey’ report for September.

“The index at -21.2 point was 25.0 points lower than the index in the corresponding period of 2019,” the report said.

“Respondents attributed this unfavourable outlook to declining economic conditions, family financial situation and declining family income.”

The CBN survey result showed that consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.1 and 30.5 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 and have plenty over savings in the next quarter and the next 12 months.

The survey showed that most respondents expected prices of goods and services to rise in the next 12 months, with an index of 36.2 points.

Details showed that the major drivers were savings, purchase of car/motor vehicle, purchase of appliances/ durables, education, food & other household needs and purchase of houses.

In the overall buying intention index, details showed that in the next 12 months, it stood at 29.7 index points, indicating that most consumers did not intend to buy big-ticket items in the next 12 months.

The report also stated that the overall buying conditions index for big-ticket items in the current quarter stood at 20.1 points.

By implication, majority of consumers believed that the current quarter was not the ideal time to purchase big-ticket items such as consumer durables, motor vehicles and houses.

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