Consumer Confidence Rises in Nigeria but Declines in Kenya and Ghana in Q1 2015

Consumer Confidence Rises in Nigeria but Declines in Kenya and Ghana in Q1 2015

Consumer confidence increased two index points in Nigeria in the first quarter to a score of 129—the highest score of the three countries measured in Nielsen’s mobile survey for sub-Saharan Africa. Conversely, confidence decreased nine points in Kenya (104) and three points in Ghana (99) from fourth-quarter 2014.

In Nigeria, sentiment for personal finances and immediate spending intentions increased marginally in the first quarter by one and three percentage points, respectively, while sentiment about the outlook for jobs declined two percentage points to 62%. Conversely, sentiment for all three indicators declined in both Kenya and Ghana.

In Kenya, the sentiment about the outlook for job prospects dropped significantly this quarter, decreasing 13 percentage points to 49%. Sentiment for personal finances (64%) and immediate spending intentions (32%) also declined five and nine percentage points, respectively, in the first quarter. In Ghana, job prospect sentiment declined four percentage points to 38%, personal finances sentiment declined two percentage points to 64% and immediate spending intentions declined one percentage point to 35% from fourth-quarter 2014.

The majority of respondents in the three countries (69% in Kenya, 67% in Ghana and 62% in Nigeria) said they did not have spare cash, a level that increased 10 percentage points in Kenya and one percentage point in Nigeria from fourth-quarter 2014. Among those who did claim discretionary funds, saving continued to be a priority for the majority, though intentions to put money into savings accounts declined 10 percentage points in Nigeria (76%), seven percentage points in Ghana (78%) and six percentage points in Kenya (83%) in the first quarter. Discretionary spending intentions for home improvement projects were the second-biggest priority among respondents in all three countries.

The three sub-Saharan countries were added to Nielsen’s measurement of consumer confidence in the first quarter of 2014 using a mobile survey methodology, which differs from the online methodology used to report consumer confidence and spending intentions for 60 other countries in Nielsen’s Global Consumer Confidence Survey.

Other findings include:

  • Consumer Confidence rises one point to a global index score of 97.
  • North American recessionary sentiment continued to recede, but spending intentions were restrained.
  • Concerns about the economy and job security decreased while health and work/life balance concerns increased.
  • Confidence in Latin America declines to the lowest level since 2011.

For more detail and insight, download Nielsen’s Q1 2015 Global Consumer Confidence Report.

About the Nielsen Global Survey

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted Feb. 23 – March 13, 2015, and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.