By Dennise Williams, Staff ReporterNEARLY TWO out of three Trinidad and Tobago residents say their economic situation has either stayed the same or improved for the September quarter of 2003.
This, according to the Market Facts & Opinions-Republic Bank Consumer Confidence Index just released in the twin-island
republic.
Consumer confidence continues to rise, up by five per cent in the third quarter, the survey said. Consumption increased by two per cent, but the expectation of consumption increased by eight per cent due to bargains stemming from the intense competition among major market players.
This, along with increased consumer spending fuelled by low interest rates, is benefiting TT shoppers.
But 78 per cent of shoppers were sure that prices would increase in the short term and 84 per cent of shoppers were convinced that prices would increase in the medium term.
LOW INTEREST RATES
As stated by the survey, current low interest rates was spurring debt consolidation and making car purchases more attractive. Of the respondents, 38 per cent felt that interest rates would not increase.
Figures released by the Trinidad & Tobago Central Bank reveal that the repo rate stood at 5.25 per cent and the prime lending rate was 11.50 per cent as at October 6, 2003.
And while the prospects for businesses in TT looked bright, the scourge of crime took a toll on consumers' confidence.
The survey results reveal that business conditions of 2003 were seen as improved over 2002 by 33 per cent of respondents. However, crime cast a damper on the overall positive figures.
A fair proportion of those surveyed were acutely aware of crime and its effects on business. The unfavourable changes in business conditions were thought to be caused by crime and kidnappings.
To date, there have been 23 reported cases of kidnappings held for ransom in 2003 and 29 kidnappings in 2002.
