MFO survey: Consumer confidence gradually increasing

Market Facts & Opinions (2000) Ltd (MFO) hosted its Consumer Economic Sentiment (CES) webinar recently, which was attended by a broad cross-section of the business community.

The online seminar shared the results of a survey on consumer confidence in TT.

Keynote speaker Nefertiti Mahluli, general manager of MFO, presented the key highlights of the 2023 CES report.

The MFO CES report is a broad study that seeks to capture the population's perceptions on the economy, including current and anticipated personal finances, government performance, business conditions, and purchasing conditions.

This study provides valuable insights into consumer sentiment, which describes their outlook for the future and buying mood.

Mahluli underscored the significance of this report to the business community, saying it would not only aid in shaping current plans, but can also help future business plans and identify potential market opportunities.

From 2017-2021, TT experienced economic challenges and emotional distress related to the covid19 pandemic, leading to a decline in consumer confidence.

However, as the country recovers, there is noticeable growth in consumer confidence. This suggests a gradual recovery and optimism among consumers.

The study found that there has been perceptible growth in consumer confidence levels, observed through the assessment of consumers’ spending behaviour – which is at its highest point since 2016. Consumer perspectives of their personal financial situations have also improved from the last wave of the study.

While this is the case, there are still significant levels of uncertainty in other areas.

MFO revealed that almost half of the consumers indicated that they are “out on a limb” (just able to meet basic expenses) concerning their family’s financial situations.

A half of the sample also believes income will not increase in proportion to increasing prices, causing potential strain on household finances.

Consumer perceptions of business conditions and economic performance have declined, with a sizeable proportion no longer anticipating good times. Factors include unfavourable changes in the business community, increased costs, crime rates, and increased unemployment.

Consumers also lack confidence in the government's ability to address issues like inflation and unemployment effectively.

MFO first ran consumer confidence studies in the 2002-2011 period.

This consumer sentiment study – which is an expanded version of the consumer confidence studies – was also undertaken in 2016, 2017 and 2021.

MFO is well equipped to evaluate the various stages consumers have gone through with regards to their finances, purchase decisions and the overall state of their confidence in the economy.

A representative national sample of 600 respondents was interviewed.

Since 1985, MFO has assisted decision-makers to identify and solve strategic business issues in marketing management.

They gain insights through innovative thinking, leveraging their experience and comprehensive database, and then work to provide their clients with actionable recommendations.