Consumer confidence improves significantly in July, but remains pessimistic

•  All indices still remain at pessimistic levels, with continuing improvement in public sentiment about future and current conditions

The Institute for Health Policy (IHP) July 2023 update of its Consumer Confidence Indices, which are generated from its Sri Lanka Opinion Tracker Survey (SLOTS) reveal significant improvement though remaining pessimistic. 

The Index of Consumer Sentiment (ICS), the broadest measure of the public’s view of  their personal economic status and the national economy increased by 6 points to 30 points in July 2023. This is the highest recorded value seen since October 2021. The ICS ranges from zero to a potential maximum of 100, with levels below 50 indicating net pessimism.

The Index of Consumer Expectations (ICE), a measure of perceptions of the future,  also increased by 6 points to a new peak of 37 indicating less pessimistic views in  public expectations about the long-term future of the country and their personal  financial situation. The Index of Current Conditions (ICC), a measure of perceptions of current conditions also showed some recovery by increasing 7 points to 20 points.

The CCI estimates are based on 459 interviews conducted in July 2023 and 11, 515  adults surveyed between 21 October 2021 - 31 July 2023, with sample sizes varying  between indices depending on which respondents were randomised to specific  questions and response rates.