Consumers continued to show confidence in the economy as the fourth quarter of 2018 saw the index increasing to 175.5 points compared with 156 at the start of the year and 148 during the corresponding period in 2017. This was largely attributed to their anticipation of jobs being created, especially in the construction sector.
Business confidence also increased to 147 points, based on expectations for a rise in economic growth and heightened expectations for improvements in their financial prospects and profitability.
Researchers said that the increase in consumer confidence meant that they were seeing five consecutive quarters of growth in this area.
As to what that confidence was built around, managing director of Market Research Services, Don Anderson, said, “What came out on top was that people believe that jobs are becoming available. The construction sector is doing very well, and in some quarters, it is regarded as booming, and therefore, whether the jobs are temporary or not is not so critically important, in that people who were not employed are now gaining employment on construction sites across the country.”
EXPANDING
He said they were also thinking, albeit less so, about the number of jobs that are being created with the expansion of the business process outsourcing sector. “This is another area that is fuelling consumer confidence. Since the start of the survey in 2001, consumer confidence has grown gradually and has accelerated during the last four years,” said Anderson in reporting on the survey of business and consumer confidence, conducted on behalf of the Jamaica Conference Board, the research arm of the Jamaica Chamber of Commerce, at its Half-Way Tree Road secretariat, St Andrew, on Tuesday.
He noted that between 2001, when the survey started, and 2018, the consumer index averaged 118 points. Between 2001 and 2011, it averaged 110, meaning that confidence fell off during that period. However, during the periods of elections in 2002, 2007 and 2011, consumer confidence heightened. “When elections are looming, confidence grows significantly but falls off dramatically within six months of the polls,” Anderson noted.
http://jamaica-gleaner.com/article/business/20190123/business-consumer-confidence#.XEhOzV_d7T8.email
Leave A Comment