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Consumers expect Nigeria’s economy to improve in the next 12 months – CBN reports

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The consumers have expressed optimism 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.

The Q4 2020 Consumer Expectations Survey (CES), released by the Statistics Department of the Central Bank of Nigeria (CBN) on Monday, December 21. 

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 & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months 

With indices of 12.2 and 3.9 points, respectively, consumers expect the borrowing rate to rise and anticipate the naira to appreciate in the next 12 months.

Also, the buying intention indices for consumer durables, motor vehicles and houses, etc were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months.

The highlights of the Q4 2020 Consumer Expectations Survey (CES) are as follows:

The consumers’ overall confidence outlook was pessimistic in Q4 2020 standing at -14.8 index points. Consumers attributed this unfavourable outlook to declining economic conditions, family financial situation and declining family income.

ALSO READ  CBN October survey shows firms expressed pessimism in economy

Most consumers expect that prices of goods and services would rise in the next 12 months, with an index of 43.1 points – largely driven by savings, food & other household needs, Education, Purchase of Appliances/durables, Purchase of Cars/Motor Vehicles, and purchase of houses.

Consumers generally expect the unemployment rate to rise in the next one year, with unemployment index for the next 12 months remaining positive at 36.9 points in Q4 2020.

Consumers are expecting the 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.

 

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