Spending Slowdown Ahead? Belize’s Consumer Confidence Decreases

In its third press conference of 2024, the Statistical Institute of Belize (SIB) reported a drop in the Consumer Confidence Index (CCI) for August, which fell to 43.6—down 3.8% from July’s 45.4. The decrease in the overall CCI for August follows several months of consistent upward growth that began in May 2024. According to Acting Manager, Economic Statistics Department, Statistician 1, Jaqueline Sabal, this decline is mainly attributed to significant reductions in the ‘Durable Goods’ and ‘Expectations’ components, which decreased by 6.2% and 5.4%, respectively.

 

 

The CCI serves as a vital indicator of consumer sentiment regarding the economy, personal financial situations, and willingness to make major purchases. Given that household spending is a key driver of economic activity, shifts in the CCI can provide early indicators of future economic growth.

According to Sabal, urban consumers saw a 1.6% decline in CCI, heavily influenced by a 6.5% drop in durable goods sentiment. Rural areas, on the other hand, experienced a sharper decline of 5.4%, particularly in the ‘Expectations’ sub-index, which fell from 59.6 to 55.1.

 

 

By gender, males reported a 4.2% drop in confidence, while females saw a 3.1% decrease. The most notable decline occurred among consumers aged 35-44, with a 13% drop, while those aged 25-34 reported an 11.5% increase. 

Ethnic disparities also emerged, as the Garifuna and Maya groups faced the largest declines, with the Garifuna CCI dropping from 51.5 to 45.9.

Overall, the August figures indicate growing pessimism among residents about their finances and the economy. It reflects increasing consumer caution regarding financial outlook and major purchases, signalling a potential slowdown in spending that could impact economic growth.