Consumers Losing Confidence in Economy

Belize’s consumer confidence continued its downward trend in April. The national Consumer Confidence Index decreased by 3.7 percent, according to the latest figures released by the Statistical Institute of Belize (SIB).

The national index declined from 45.7 in March to 44.0 in April. This reflects a growing pessimism among consumers about both current and future economic conditions. According to SIB, the decline was driven mainly by reduced optimism surrounding future macroeconomic conditions and household financial situations over the next twelve months.

The “Expectations” component of the index recorded the sharpest decline, dropping 7.7 percent from 54.6 in March to 50.4 in April. Meanwhile, the “Present” component, which measures perceptions of current economic and household financial conditions compared to a year ago, fell by 5 percent from 43.2 to 41.0.

Despite the overall decline, sentiment regarding major household purchases showed slight improvement. The “Durable Goods” component increased by 3.3 percent, moving from 39.3 in March to 40.6 in April, indicating consumers were somewhat less pessimistic about making major purchases such as appliances, furniture, and vehicles.

District-level data showed that Stann Creek experienced the steepest drop in consumer confidence. The district’s index fell by 14.1 percent, from an optimistic 51.9 in March to 44.6 in April. The decline was largely attributed to worsening views of current economic conditions and reduced optimism about future financial prospects.

Belize District was the only district to record an increase in confidence during the month. Consumer sentiment there rose by 4.4 percent, climbing from 44.5 in March to 46.5 in April. The report attributed the increase to improvements across all three subcomponents of the index.

Consumer confidence among males fell by 4.6 percent, while female sentiment declined by 2.1 percent. Among age groups, persons aged 25 to 34 recorded the largest decrease in confidence, with their index dropping by 10.5 percent. On the other hand, consumers aged 55 and older reported improved confidence, with their index increasing by 7.6 percent.

By ethnicity, persons identifying as Mestizo/Hispanic recorded the largest decline in sentiment, with their index falling by 11.8 percent. Meanwhile, persons of Mayan descent reported the largest improvement, rising by 5.1 percent during the month.