Consumer confidence down

Byblos Bank/AUB index sinks to four-year low in 2011

The Byblos Bank/AUB Consumer Confidence Index found consumer confidence in the fourth quarter of 2011 had dropped to its lowest levels since 2007 (since the index’s inception). The index reached its lowest point on a monthly basis in December 2011.

According to the report, the index posted a monthly average of 51.7 during 2011, down from an average of 72.8 in 2010, and 96.7 in 2009.

The index is a measure of the sentiment and expectations of consumers towards the economy and their own financial situation on a scale from zero to one hundred (where zero is no confidence). It is calculated on a monthly basis, with January 2009 as its base month.

The study found that in the fourth quarter of 2011 consumers surveyed had higher near-term expectations than their views on their current condition. But the Present Situation Index and the Expectations Index both regressed during the last three months of 2011.

The results of the index showed that male consumers displayed a relatively higher level of confidence than female consumers. It also showed that consumers aged between 21 and 29 years displayed higher confidence than other age brackets. According to the study, consumers with household income above $2,000 per month have a higher level of confidence than those earning less.

Reported by Hanadi Chami