Page 20 - ARUBA BANK

A15
LOCAL Monday 29 January 2018

Despite Improved Financial Situation, Consumers Remain Pessimistic

ORANJESTAD - In the fourth quarter of 2017, The expectations index of the consumer
consumer sentiment worsened according declined from 97.3to 96.3,driven largely by
to the latest results of the Consumer Confi- a negative outlook on the future business
dence Survey (CCS) of the Centrale Bank and economic conditions, low job expec-
van Aruba (CBA). The Consumer Confi- tations as well as the (lower) expectations
dence Index (CCI) stood at 94.6 against on the financial position of the govern-
95.6 in the preceding quarter, indicative of ment.
relatively pessimistic sentiments (Chart 1). The Consumption Habits Index also fell in
the quarter under review (Chart 2). Most
Despite general negative sentiments, con- consumers indicated that it was unsuitable
sumers were, however, positive about their to purchase a car (74.1%), to take out a
present personal financial situation, with loan (72.0%) or a mortgage (86.0%). The
the index at101.2. Consumers were also vast majority of respondents (78.4%) ex-
confident about their future financial situa- pect that prices will increase in the coming
tion (102.6).Other components in the pres- 6 months leading to a Price Expectations
ent situation index of the consumer had Index of 90.7.
more pessimistic outcomes compared In summary, the decrease in consumer
to the last survey, leading to a small de- confidence is attributed to declines in all
crease in the Present Situation Index, i.e. components of the Consumer Confidence
from 94.8 to 94.3 (Chart 2). Index (Table 1). q