Consumer confidence continued to decline in June

Consumer confidence, already at extremely low levels, continued to drop with public continuing to indicate they believe conditions will worsen in coming months and years.

The Institute for Health Policy (IHP) released yesterday the June 2022 update of its Consumer Confidence Indices, which are being trialled as part of its Sri Lanka Opinion Tracker Survey (SLOTS).

All IHP’s Consumer Confidence measures declined throughout the month of June, falling to their lowest values since IHP started tracking them in September 2021, and in all cases very close to their lowest possible level.

The Index of Consumer Sentiment (ICS), which is the broadest measure reflecting the public’s views on their personal economic status and the broader national economy, fell four points from six in May to two in June, close to its lowest potential level of zero. 

The Index of Consumer Expectation (ICE), which captures Sri Lankans’ views about the future, also fell from four points to one in June, indicating that sentiment is being driven by increasing lack of confidence in the future.

The Index of Consumer Conditions (ICC) a broad measure of perceptions about current conditions, also fell from six to four in June.

This worsening in sentiment is despite the resignation of the Prime Minister and Cabinet in early May but coincided with growing numbers of people turning out on the street and calls for the President to resign. The deterioration in the economic situation with continuing power cuts, lack of fuel and transports, and worsening shortages of items undoubtedly contribute. Overall, the public remained deeply pessimistic about conditions and the future during June.