CBN Governor
CBN Governor

Central Bank of Nigeria, CBN, has said that the overall outlook of consumers in the second quarter of the year, Q2, 2016 remained downbeat. This was the result of the Q2 2016 Consumer Expectations Survey, CES, conducted during the period May 1-13, 2016.
The apex bank stated that survey response could be attributed to the bleak outlook of consumers as they anticipated a worsening economic condition, drawing down on their savings or getting into debt and a decline in net household income. The sample size was 1,950 households, drawn from the National Bureau of Statistics, NBS, Master Sample of Households. A response rate of 99.7per cent was achieved.
Consumers however, had a positive outlook for the next quarter and the next 12 months. The optimism could be attributed largely to the expectation of improved economic conditions in the country, anticipated increase in their net household income, which could lead to increased savings to meet their financial obligations. Respondents’ bleak outlook on economic condition, family financial situation and family income in the cur-rent quarter was pessimistic across all income groups.
On average, more households nationwide expect some increase in their expenditure on basic commodities and services in the next 12 months. Consumers expect to spend substantial amounts of their income on education, medical care, investments, food and other household needs. Majority of consumers nationwide believe that the next 12 months would not be an ideal time to purchase big-ticket items like consumer durables, motor vehicles, houses and a lot more.
Most consumers expect inflation rate to rise in the next 12 months. The major drivers of the expected upward movement in prices are: house rent, electricity, education, food and medical care. Majority of the consumers expect unemployment to rise in the next 12 months as the index stood at 17.1 points. They also expect borrowing rates to rise and naira to be stronger.

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