Consumer Confidence Hit An All-Time Low In Lebanon

Consumer Confidence Hit An All-Time Low In Lebanon
AFP/Anwar Amro

In the third quarter of 2020 (July-September), consumer confidence plummeted to an all-time low, according to the Byblos Bank/AUB Consumer Confidence Index.

The index, which measures the average confidence score of consumers in Lebanon, settled on an average of 17.5 between July and September this year.

Compared to the same period last year, the index decreased by 74.7%. It dropped to a record low in August, when it reached 14.8, before rising again in September to 19.9.

A crowd in front of an OMT branch.
AFP/Anwar Amro

Notably, the results of a poll conducted during this quarter indicated that female consumers generally had a higher level of confidence than male consumers and that consumers between the ages of 21 and 29 had the highest confidence levels.

In terms of optimism about the future of the personal financial situation, students scored the highest in the poll.

The sharp decrease in consumer confidence levels has been partly attributed to the devastating impact of the Beirut Port explosion that erupted in August.

AP/Bilal Hussein

Additionally, the void in the political scene and the lack of effort in forming a new government, which lowers hopes of reforms and economic recovery, coupled with the anticipated lifting of subsidies on basic commodities, have affected the index.

That is not to mention the rising unemployment rates, salary cuts, and the continued deterioration of the Lebanese pound against the US dollar, all of which have left many people in Lebanon insecure about their ability to continue securing their needs.