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A recent survey by the Central Bank of Nigeria (CBN) has revealed that Nigerians are resorting to depleting their savings and accumulating debt due to the persistent rise in prices of goods and services.

Despite this, many remain optimistic about improved economic conditions and increased income in the near future.

The CBN Household Expectations Survey for July 2024, which polled 1,665 respondents with a response rate of 99.7%, showed a downbeat outlook among consumers, with many anticipating increased expenditure on basic necessities and a decline in purchasing power.

On average, more households expected increased expenditure on basic commodities and services across all periods under review.

The survey also revealed a majority expectation of Naira depreciation, rising borrowing rates, inflation, and unemployment. Specifically, respondents believed that the review period would not be an ideal time to purchase big-ticket items like Consumer Durables, Motor Vehicles, and Buildings & Landed Properties.

Furthermore, the respondent households believed that the economy would end up weaker rather than stronger if prices started to rise faster than they do now. Given a trade-off between Inflation and Interest Rate, the majority of respondents would prefer lower Interest Rates.

However, consumers expressed a glimmer of hope, anticipating improved economic conditions and increased family income over the next six months, with an index of 2.7 points.

The Consumers’ overall outlook in July 2024 improved marginally at -41.7 points compared to the previous month, indicating that though pessimistic, less people expressed pessimism compared to the previous month.

The outlook in the month under review could be attributed to worsening economic conditions, declining family financial situations, and anticipated decline in family income in the review period.

The pessimism in the review period was projected to continue into the next month and next three months with indices of -21.8 and -9.1 points, respectively.

ABUJA BUSINESS REPORTS NEWSPAPER & MAGAZINE