Consumers urged to tighten belts

2016-07-07 06:00

As consumer confidence takes a dip, consumers curb their spending on discretionary goods and credit exposure.

The Bureau of Economic Research’s (BER) Consumer Confidence Index (CCI) fell two points from -9 index points in the first quarter of 2016 to -11 index points in the second quarter of the year. The weaker reading is attributed to political uncertainty, a limited expansion in public sector employment, social unrest, rising food prices and previous hikes in the domestic interest rate. As a result, discretionary spending has been reduced, explained economist Sanisha Packirisamy of Momentum Investments. She said credit demand and supply has also been impacted.

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