Survey Shows Consumer Confidence on Decline

The Portfolio of Indices report released by NOIPolls Limited has revealed Consumer Confidence Index for March shows a significant 12-points decline from February 2014 results.

These are the key highlights from the March Portfolio of Indices Press Release.

Furthermore, NOIPolls Personal Well-Being Index stands at 41% in March 2014 indicating a 1-point drop from February.

In February 2014, NOIPolls officially unveiled 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).

The NOIPolls Personal Well-Being Index measures factors impacting on the lives of everyday Nigerians; thereby producing a complete view of the individual’s personal well-being.

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

The NOIPolls Eagle 30 Business Confidence Index measures business leaders’ perceptions and expectations of the Nigerian business environment using the top 30 companies in the country.

Nigerian businesses, financial and government agencies largely depend on their perceptions and micro assessment of consumers’ expectation in making decisions, NOIPolls Limited stated.

At best, they draw conclusion on the business environment based on information from their immediate surroundings while the minority 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 behavior, the economy and the business environment in Nigeria.

Specifically on Consumer Confidence Index (CCI), the result indicates that consumers remain somewhat positive about their personal state and stability of the economy.

In general, this should lead to the purchase of more goods and services and eventually stimulate economic growth.

The NOIPolls Consumer Confidence Index comprises of 2 independent variables; the Present Situation Index (PSI) and Expectation Index (EI).

In March, the Present Situation Index of 58.57 shows that Nigerians feel slightly good about their present personal and economic situation. Similarly, the Expectation Index score of 76.2 reveals that consumers are highly optimistic about the future.

Trend analysis shows that the overall CCI dropped by 12-points; the Present Situation Index increased by 2-points while the Expectation Index experienced a highly significant 20-points decline.

This drop shows that Nigerians have significantly lowered their expectations for the future by March compared to February 2014.

This can be linked to 2013 PWBI results conducted by NOIPolls that suggests Nigerians start the year being highly optimistic and this gradually drops over the course of the year as the reality of their present situation encroaches on their future expectations.

This is significant in the light of March CCI results where the Expectation Index experienced a sharp decline and the Present Situation Index experienced a slight increase.

Quarterly trend analysis shows that the consumer confidence index of Nigerians experienced a total decline of 15.3-points over the first quarter of 2014.