Consumers spent more money in Q4 as Confidence Index soared – Report

Consumers spent more money in the last quarter of 2016 than they did in the third quarter, indicating a rise in Nigeria’s Consumer Confidence Index (CCI).

The NOI Polls Consumer Confidence Index released yesterday in Abuja revealed that the Index increased by 1.3-points to stand at 58.1-points in Q4, 2016.

The Consumer Confidence Index is an important economic indicator that studies the spending and saving intention of consumers after they must have evaluated the various assurances they have on the country’s economic status in relation with their individual monetary status.

The report released by the NOI Polls stated that “the increase experienced could be indicative that there was a higher probability for consumers to have spent more in Q4 than in Q3.”

It is also important to note that the last month of Q4, being December, was a period were consumers tended to spend more during the end of year festivities.

The NOIPolls disclosed that the Index involved telephone interviews of a random nationwide sample. 3,000 randomly selected phone-owning Nigerians aged 18 years and above, representing the six geopolitical zones in the country, were interviewed to arrive at the findings.

The Index has two variables: the Present Situation Index (PSI) and the Expectation Index (EI). Analysis of the report showed that both variables experienced increases.

The Present Situation Index experienced an increase of 2.5-points to stand at 23.6-points while the Expectation Index (EI) increased by 0.5-point to stand at 84-points.

The Index provides consumer assessments of the economic situation and their intentions and expectations for the future.

The Consumer Confidence Index should not be confused with the NOIPolls Eagle 30 Business Confidence Index which measures business leaders’ perceptions and expectations about the Nigerian business environment using the top 30 companies in the country.