According to the report the PWBI, which measures how Nigerians feel about their lives, dropped from 64.5 points in the first quarter of 2016 to 63.9 points in the quarter under review.
Giving a detailed analysis of the individual indicators that make-up the PWBI, the report revealed that while Nigerians were still very much satisfied with their religion, and social interaction in their society, Nigerians showed further dissatisfaction with their standard of living and personal economic situation, even as these indices experienced the highest decrease of 2-points each in Q2, 2016.
“This decline may be an effect of recent reports of massive lay-offs of workers as several companies are trying to cut costs so as to remain in business,” it said.
The report noted that the NOIPolls Personal Well-Being Index (PWBI) contains seven items of satisfaction, each one corresponding to the different aspects of life.
It added that in the second quarter, the Economic Index and the Standard of living index experienced the greatest decline of 2-points each, an indication that Nigerians were not contented with their well-being.
In addition, the report disclosed that the Consumer Confidence Index (CCI) decreased by 3.5-points to stand at 56.4-points in the second quarter oif 2016, compared with 59.9-points recorded in the first quarter of 2016.
The CCI, according to the report, depicts how the purchasing power of Nigerians affects the general economy of the Nation.
“Therefore the decrease recorded in the CCI in Q2, 2016 revealed that there is a reduction in consumer spending, hence, the reduction in revenue generation in the economy.
“News reports revealed that some state Governments have been experiencing difficulties in paying salaries and had to seek for a bail out contributing to the perceived reduction in consumer spending in such states and in the country at large,” the report explained.
It added that, “There are two sub-components of the NOIPolls Consumer Confidence index; the Present Situation Index (PSI) and Expectation Index (EI). The PSI decreased by 7.7-points to stand at 20.9-points, while the Expectation Index (EI) also dipped by 0.2-point to stand at 82.9-points in second quarter 2016. The decrease expressed by these two independent variables indicated that the buying power of Nigerians has further weakened when compared to Q1, 2016.”
To this end, the report said, “Therefore, it is imperative for the government to intensify its efforts at diversifying the economy and creating an enabling environment for investors. Financial experts have asserted that countries that experience robust GDP growth rates over time will attract investments, given that the private sector considers the GDP of a country when making investment decision.”
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