Consumers’ll Avoid Buying Expensive Items In 2021 – CBN Survey
The Central Bank of Nigeria has said most of the consumers it surveyed recently do not have plans to buy big-ticket items in 2021, considering the current economic conditions, according to a survey by the Central Bank of Nigeria.
The statistics department of the CBN disclosed this in its consumer expectations survey report for the fourth quarter of 2021.
According to the report, consumers’ overall outlook was negative in the current quarter, as consumers were pessimistic in their outlook.
However, it added, the consumers had a positive outlook for the next quarter and the next 12 months.
Part of the report read, “The overall buying conditions index for big-ticket items in the current quarter stood at 21.6 points.
“This indicates that majority of consumers believed that the current quarter was not the ideal time to purchase big-ticket items like consumer durables, motor vehicles and house and lot.
“Overall buying intention index in the next 12 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 and lot were below 50 points, which shows that respondents have no plans to make these purchases in the next 12 months.”
The survey report showed that the consumers were however optimistic 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.
Most respondents expected prices of goods and services to rise in the next 12 months, with an index of 43.1 points.
The major drivers were savings, food and other household needs, education, purchase of appliances/durables, purchase of car/motor vehicle, and purchase of houses.
With indices of 12.2 and 3.9 points, respectively, consumers expected the borrowing rate to rise and anticipated the naira to appreciate in the next 12 months.
The unemployment index for the next 12 months remained positive at 36.9 points in Q4 2020, indicating that consumers generally expected the unemployment rate to rise in the next one year.