Ghana has dropped five points on the latest Consumer Confidence Index (CCI) for the fourth quarter of 2018.
The West African country has seen its index decreased by five points and has currently dropped to 108.
According to Nielsen Market Lead for West Africa Emerging Markets, Yannick Nkembe, the continuous depreciation of the cedi could be a factor to Ghana CCI drop.
He explained that job loses, as a result of the collapse of multiple banks, is also a contributing factor.
“…the continued depreciation of the Cedi, the collapse of certain banks leading to job losses, and the high cost of credit and an inability to access credit have led to a drop in consumer sentiment in Ghana,” he said.
More than 1,500 respondents were contacted during the conduction of the Nielsen Consumer Confidence and Spending Intentions survey.
The survey was conducted on November 15 to 16, 2018 in Kenya, Ghana, and Nigeria using mobile methodology.
A report issued by MediaInk Communications, on behalf of Nielsen Africa, said the decline in sentiment for Ghana is clearly reflected in Ghanaian consumers’ immediate-spending intentions.
“Only 40% Ghanaians say now is a good or excellent time to purchase what they want or need, a substantial eight-point drop compared to the previous quarter. Negative sentiment is also reflected in Ghanaian’s job prospects. Only 58% Ghanaians view their job prospects as excellent or good, experiencing a six-point drop compared to the previous quarter.
“Sentiment around the state of personal finances has also taken a slight hit with Ghanaians who think the state of their personal finances would be excellent or good over the next year having dropped nine points from the previous quarter to 67%. This in comparison to 31% who think that the state of their personal finances is not so good or bad, which represents a substantial 13% increase in this negative sentiment,” sections of the report reads.
On whether Ghanaians have spare cash to spend, 42% said yes, versus 53% in the previous quarter.
Meanwhile, 77% of Ghanaian consumers would put their spare cash into savings once they meet their essential living expenses, while 70% said they would invest in shares/mutual funds.
“Consumer confidence in West Africa declined in the last quarter of 2018. However, it still falls on the positive side of the spectrum and we hope to see a rebound in confidence levels in 2019,” Mr. Nkembe added.
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