Apr 2015 Financial News

Central Bank: Consumers still spending

Apr 08, 2015

Despite some negative opinions about falling oil prices, consumers are still willing to spend, the Central Bank has said.

The bank has based this on latest available data which shows that in January 2015 consumer credit increased by nearly 8.5 per cent.

In its newest monetary policy report last week, the bank stated that current and expected settlement of wage negotiations for teachers, civil servants and other public sector workers with considerably large retroactive payments and salary increments will boost consumer spending and further stoke inflationary pressures.

On March 11, Chief Personnel Officer (CPO) Stephanie Lewis announced that public servants will receive a 14 per cent pay hike, retroactive at four per cent from January 2011.

The Bank noted though that expansionary fiscal stimulus remains on track and that Central Government’s spending on its capital programme was higher by seven per cent in the first four months of fiscal year 2014/2015, when compared to the corresponding period one year ago.

Meanwhile, the Central Bank stated that over the final quarter of 2014, economic growth was buoyed by further positive momentum in the non-energy sector, even as activity in the energy sector was marred by maintenance work.

It said discussions with upstream energy producers suggest there was no carry-over of maintenance-related activity into early 2015 and the start-up of BGTT’s Starfish well is expected to provide a fillip to upstream gas production in 2015.

"Both natural gas and crude oil output were higher by almost 2 per cent and 12 ½ per cent, respectively, in January 2015. The near-term outlook for the non-energy sector is for continued steady performance, albeit at a slower pace than in 2014."

Source:
By Leah Sorias
leah.sorias@trinidadexpress.com
Trinidad Express
Wednesday April 8, 2015

http://www.trinidadexpress.com/business/Central-Bank-Consumers-still-spending-298988771.html