Consumers in the country expressed positive outlook in the nation’s economy in Q3 and Q4 of this year even as they expected that Naira would gain in its exchange rate with foreign currencies and that cost of funds (loans) would drop in the months ahead.
These expectations were expressed by consumers in the Q3 2019 Consumer Expectations Survey (CES) report published on Thursday by the Central Bank of Nigeria (CBN).
Some major highlights of the survey showed that majority of consumers in their responses to the survey believed that the next 12 months would not be an ideal time to purchase big-ticket items like motor vehicles, houses and transportation.
The consumers, who also projected that prices of goods and services would rise in the months ahead(higher inflation rate) linked major drivers of the expected upward movement in prices to purchase of appliances/ consumer durables, savings, education, purchase of car/motor vehicle, purchase of house and transportation.
The CBN report reflected that the consumers’ overall confidence outlook rose in Q3 2019, as more consumers were optimistic in their outlook with the index rising to 3.8 points, higher than the 2.3 points recorded in index in the corresponding period of 2018.
This is even as the report stated that respondents attributed the favourable outlook to improved family income and family financial situation while consumer outlooks for the next quarter and next 12 months were positive at 22.8 and 31.5 points, respectively
Similarly, the survey report hinged the consumers’ positive outlook on anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next 12 months.
On the unemployment rate outlook, the report indicated that the unemployment index for the next 12 months remained positive at 21.8 points in Q3 2019, suggesting that consumers generally expect the unemployment rate to rise in the next one year.
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% had university education, 11.7% had higher non-university education, while 27.8% had senior secondary school education. Those with junior secondary and primary school education accounted for 5.0% and 19.3% respectively, while those with no formal education accounted for the balance of 28.9%.
