The recent consumer confidence index released by the polling agency NOI shows that the indices drop by 1.3 points in December 2014.
According to NOIPolls, Nigeria’s Consumer Confidence Index (CCI) for December 2014 stands at 67.4 point, decreasing by 1.3-point from November 2014. But the relatively high score still implies that Nigerians remain positive about their current personal situation, the economy and are also hopeful about their future.
The Consumer Confidence Index comprises of two independent variables – the Present Situation Index (PSI) and Expectation Index (EI). The Present Situation Index is currently recorded at 73 percent and the Expectation index at 59.9 percent. The PSI increased by 1.3 percentage point, while the EI decreased by 3.3-points in December 2014.
The expectation of Nigerians about the country’s economic situation stood at 86.6 percent, this shows that Nigerians are always hopeful about the future.
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Current employment condition index of 60.9 percent shows an increase of 2.2 points compared with November. It implies that there was an improvement in the working conditions of employment. Also, there was a slight increase in the percentage of Nigerians that expects their working conditions to improve.
The index for the current prices of goods and services of 87 points shows that consumer believe that prices of goods and services have increased when compare with prices in November.
There was a slight increase observed in the expectations of the total family income index. The total family index expectation is 67.7 percentage points, shows that the expectations of Nigerians still remain high.
Consumer confidence can move the market of any economy by making investors to be more willing to purchase equities. A consumer that feels that his or her standard of living is increasing is likely to spend more and make bigger purchases.
Josephine Okojie
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