Oct 2009 Financial News

Consumer Confidence Index surges new high level

Oct 12, 2009

Lower inflation and reports of growth in the global economy have generated a brighter outlook for local businesses, as T&T’s Consumer Confidence Index (CCI) surged seven basis points to 71—its highest level since March last year. Despite holding reservations that it was too early to predict consumer sentiment towards the end of the year, Dr Ronald Ramkissoon, senior economist, Republic Bank Ltd, said the latest figures to be released today were a good sign for the economy, as it showed that a larger portion of the population were optimistic about their individual economic circumstance. Despite the survey results showing the majority of the sample holds the view that business conditions have worsen since 2008, the proportion of consumers with this pessimistic outlook had decreased since the last survey three months ago. This positive opinion was further reflected in the four per cent increase in the proportion of consumers who predicts improved business conditions in 2010, Ramkissoon said.

The survey results, which were released by Market Facts & Opinions, also covered the public’s perception about future movements in interest rates. "It is interesting to note that in September last year, 81 per cent of the sample felt that interest rates would go up over the following 12 months. This is a significantly larger proportion than those who held this view in this quarter,” Ramkissoon said. “This is a significant shift from the perception a year ago, and is undoubtedly driven by the downward movements in interest rates over the past nine months,” he said. Discouraging news about the global economy, rising inflation, crime and the CL Financial bailout at the beginning of 2009, played a telling role in the decline of the index earlier this year to the lowest score on record of 53 in March. The use of the CCI is well established in developed countries and it is another tool that is used to gauge, not so much economic performance as measured by economic indicators, but how the consumer feels about day to day living in general.


Source:
Peter D Neptune
Trinidad Guardian
Monday October 12, 2009

http://guardian.co.tt/business/business/2009/10/12/consumer-confidence-index-surges-new-high-level