KASI consumer confidence (KASI CCI) rose in November leading up the holiday season; the index improved 6 points to +9. While the sub-index of current economic conditions remain stable at -15, there was an 8 points improvement of the index of consumer expectations that reached +18. Tanzania’s consumer sentiment experienced the most significant movement improving 55 points from -17 to +40. Consumer sentiment in Ghana continues to be muted with the lowest CCI at -30.
KASI Consumer Confidence Score (KASI CCI) is a composite index compiled from a seven-question survey that runs monthly via our consumer polls in the countries covered. The data output is based on a fresh, randomly selected representative sample of city dwellers aged 18-64. Released the first week of every month, KASI CCI provides a focused view on consumer perceptions in seven African urban centres (Ghana, Nigeria, Kenya, South Africa, Cameroon, Ivory Coast, Tanzania) where most spending in the continent is concentrated.
Weak job prospects continue to dampen confidence in current economic conditions
Consumer confidence in current economic conditions remained stable and negative at -15 driven by the job prospects sub-index that decreased from -32 to -39 signalling continuous pressure with the job markets in Africa. Across markets, Cameroon continues to have a better job prospect level at -11 while Nigeria shows the worst job prospect score at -66.
Improved household income drives up optimism in future economic conditions
Consumers’ economic expectations edged up 8 points to +18 in November. Globally, consumers are expecting their household income to improve over the next 6 months and economic conditions to improve in their country and city. Across markets, consumer confidence in future economic conditions is higher in Tanzania (+44) and lower in Ghana (-31).
What does it mean for retailers and holiday shopping?
Across markets, consumers are planning to shop for the holiday in December or later, it means that you should expect a last-minute rush to get the gifts and purchases.
“As African shoppers delay the start of their shopping season, the holiday gift hunt is far from over which means there is still time to utilize these insights to fine-tune your promotional strategies, capture more sales and make this your merriest holiday,” said Patience Muyambo, Director of Research at KASI.
For each question, the final metric will be a ‘balance measure’ of the percentage of positive responses minus the percentage of negative responses. The overall metric will be an average across all the questions. November 2019 data were collected from 11/21 to 12/06, 2019.