Consumer Optimism Grows as Inflation Expectations Moderate, CBN Survey Shows

Consumer confidence strengthened in July as Nigerians became less concerned about rising prices, but households remained cautious about spending on homes, vehicles and other high-value items, according to the Central Bank of Nigeria (CBN).

The survey showed that overall consumer confidence strengthened during the month, signaling a gradual improvement in public expectations despite lingering concerns over household finances and current economic conditions.

Respondents also reported lower expectations for future price increases, suggesting that inflation concerns have begun to ease after months of elevated cost pressures.

Even with the improved outlook, consumers remained reluctant to spend on high-value assets such as homes, vehicles and household appliances.

The survey found that most households continue to prioritise essential expenditures, including food, transportation, electricity and other basic living expenses, while postponing discretionary purchases.

The findings indicate that although confidence is recovering, purchasing power has yet to rebound sufficiently to support stronger demand for durable consumer goods.

Buying intentions for major assets remained subdued, with many respondents indicating that prevailing economic conditions were still not favourable for significant investments or large household purchases.

However, expectations for the coming months were more encouraging.

Many households anticipate improvements in family income, personal finances and the broader economy over the next three to six months, pointing to growing confidence that economic conditions could continue to stabilise.

The survey also showed a modest improvement in households’ assessment of their financial position compared with previous months, although overall perceptions remained below positive territory.

Views on the wider economy similarly improved but continued to reflect caution, highlighting that the recovery in consumer confidence remains gradual rather than broad-based.

On monetary policy, respondents expressed mixed expectations regarding borrowing costs.

A significant proportion of households believe commercial lending rates could rise further in the coming months, while a majority indicated a preference for lower interest rates to support household spending and business activity.

The survey suggests that Nigerians continue to balance improving economic expectations against the realities of higher living costs and constrained disposable income.

For businesses, particularly retailers, automobile dealers and real estate developers, the findings indicate that demand for non-essential goods may remain subdued until stronger income growth translates into higher consumer spending.

The latest results nevertheless point to a gradual strengthening in household confidence, offering another indication that improving macroeconomic conditions and moderating inflation expectations are beginning to influence consumer sentiment across the country.