What is driving Nigeria consumer confidence?

Lagos – October 18, 2019: There was no change in the CCI this month; the index remained at +4. There was minor movement in individual index scores. Nigeria’s CCI experienced the most significant movement dropping five points from +24 to +19. Nigeria still holds the highest CCI score while Ghana continues to underperform with the lowest CCI of -32.

Consumer confidence in current economic conditions up 3 points

Consumer confidence in current economic conditions improved by 3 points but remained negative at -14. This increase was helped by an eight-point increase in the job prospects sub-index. Although still negative, the job prospects sub-index increased from -38 to -30. Nigeria showed the most significant increase in the sub-index, moving up to -43 this month from -64 in August.

Consumer economic expectations fall slightly by 2 points

Consumers’ economic expectations fell slightly by 2 points, from +12 in August, to +10 in September. There was minimal movement in the sub-indexes that measure consumer economic expectations, however, some countries experienced significant changes. For example, Nigeria experienced a significant decline in the national economy expectations sub-index. This decline was balanced out by growth in the sub-index in other countries.

A deep dive into Nigeria’s CCI performance

Nigeria has recorded the highest CCI score every month this year. The score matched its historical high of +29 in June and the lowest score is +19 (in January and September of this year).

Sub-indexes indicate that Nigerians have low confidence in current economic conditions (sub-index score of -17) relative to other countries; however, there is a very high economic expectation (sub-index score of +33) among Nigerian consumers. Driving down confidence in current economic conditions is low job prospects. Nigeria’s job prospects index, at -43, is the lowest among countries tracked.

Yet, Nigerian consumers remain optimistic about the economy. The country recorded the highest scores in both the city and national economy expectations sub-index, +35 and +39 respectively. In addition, the sub-index that scored highest in Nigeria was the income expectations sub-index. This sub-index scored +43 suggesting that Nigerian consumers expect continued growth in their incomes. Nigeria’s income expectations sub-index was also the highest among countries tracked, about 16 points higher than the second-highest score.

Although Nigerian consumers are confident in their country’s economy, the availability of jobs remains a significant issue, both in Nigeria and in the rest of the countries tracked.

KASI Consumer Confidence Score (KASI CCI)

SOURCE:https://brandspurng.com/2019/10/21/nigeria-consumer-confidence-falls-in-september-report/