Sur­vey Shows Sus­tained Rise in Con­sumer Con­fi­dence

THISDAY - - BUSINESS WORLD - Obinna Chima

The NOI Polls has put the level of its Con­sumer Con­fi­dence In­dex (CCI) for sec­ond quar­ter 2017 at 64.8-points.

This rep­re­sented an in­crease of 2.1-points when com­pared with 62.7-points ob­tained in the first quar­ter of 2017.

The Con­sumer Con­fi­dence In­dex re­veals con­sumers’ ten­den­cies to spend, which is di­rectly pro­por­tional to their ex­pec­ta­tions for a gen­eral im­prove­ment in the coun­try’s eco­nomic con­di­tions, em­ploy­ment op­por­tu­ni­ties, per­sonal fi­nan­cial strength and sta­bil­ity in the prices of goods and ser­vices.

Ac­cord­ing to the sur­vey, the slight leap in the con­fi­dence of con­sumers in Nige­ria could have in­flu­enced their propen­sity to pur­chase with a de­gree of op­ti­mism about the over­all state of the econ­omy.

This op­ti­mism could be linked to some im­prove­ments in poli­cies in re­cent times which have pro­pelled the na­tion’s econ­omy into the path of re­cov­ery in Q2, 2017, al­though, in a slow pace.

Some of the poli­cies in­clude im­prove­ment in for­eign ex­change, Ease of Do­ing Busi­ness, the Ex­ec­u­tive Or­ders, amongst others ac­cord­ing to The Busi­ness Con­fi­dence Mon­i­tor (BCM) that was re­leased recently by the Nige­rian Eco­nomic Summit Group (NESG) recently.

In ad­di­tion, the re­port showed that there were two vari­ables that make up the CCI- the Present Sit­u­a­tion In­dex (PSI) and the Ex­pec­ta­tion In­dex (EI).

The PSI and the EI both expe- ri­enced an in­crease of 3.8-points and 0.9-point re­spec­tively when com­pared to the re­sult ob­tained in Q1, 2017.

In Fe­bru­ary 2014, NOI Polls in­tro­duced its port­fo­lio of in­dices; the NOIPolls Per­sonal Well-Be­ing In­dex (PWBI), the NOIPolls Con­sumer Con­fi­dence In­dex (CCI) and the NOIPolls Ea­gle 30 Busi­ness Con­fi­dence In­dex (EBCI).

Nige­rian busi­nesses, fi­nan­cial and gov­ern­ment agen­cies largely de­pend on their per­cep­tions and mi­cro as­sess­ment of con­sumers’ ex­pec­ta­tion in mak­ing de­ci­sions. At best, they draw conclusions on the busi­ness en­vi­ron­ment based on in­for­ma­tion from their im­me­di­ate surroundings while the mi­nori­ties con­duct sur­veys that are time and money con­sum­ing. How­ever, the in­tro­duc­tion of th­ese in­dices pro­vides in­di­ca­tors that will en­sure stake­hold­ers can de­tect and re­spond to changes in con­sumer be­hav­iour, the econ­omy, and the busi­ness en­vi­ron­ment in Nige­ria.

Fur­ther­more, the NOI Polls’ Cur­rent Eco­nomic Sit­u­a­tion In­dex in­creased from 39.5-points in Q1, 2017 to 42.2-points in Q2, 2017. Al­though this in­dex experienced an in­crease of 2.7-points, it still in­di­cates that con­sumers are some­what not sat­is­fied with the coun­try’s Cur­rent Eco­nomic Sit­u­a­tion.

“The Ex­pec­ta­tion of the Coun­try’s Eco­nomic sit­u­a­tion in­dex is one of the high­est in­dices and it in­creased by 0.9-point from 93.5-points ob­tained in Q1, 2017 to stand at 94.4-points. This por­trays a high op­ti­mism about the im­prove­ment in the

coun­try’s eco­nomic sit­u­a­tion.

“The Cur­rent Em­ploy­ment Con­di­tion im­proved from the av­er­age (50-points) po­si­tion in Q1, 2017 to stand at 53.4-points in Q2, 2017 rep­re­sent­ing a sig­nif­i­cant 3.4-points in­crease.

“The Ex­pected Em­ploy­ment Con­di­tion In­dex re­mained the same (98.4-points) as the re­sult ob­tained in Q1, 2017, sig­ni­fy­ing that Nige­ri­ans are still op­ti­mistic in terms of their ex­pected em­ploy­ment con­di­tion,” it added.

In ad­di­tion, it showed that the Cur­rent Prices of Goods and Ser­vices In­dex experienced the high­est in­crease of 5.3-points in this quar­ter to stand at 18.8-points from 13.5-points recorded in Q1, 2017. Though, it re­mained the low­est in­dex, the in­crease ob­served in Q2, 2017 re­vealed neg­a­tiv­ity in the coun­try’s mar­ket de­vel­op­ments, mean­ing that prices of goods and ser­vices are in­creas­ing.

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