Sri Lanka's consumer confidence held steady in May, showing only slight changes from previous months but with noticeable improvements towards the end of the period, according to a report by the Institute for Health Policy (IHP).
The Institute's Index of Consumer Sentiment (ICS), which gauges overall economic outlook, dipped by 1 point to 29 in May, slightly below its peak levels observed in March. Meanwhile, the Index of Current Conditions (ICC), reflecting current economic perceptions, decreased by two points to 24. In contrast, the Index of Consumer Expectations (ICE), measuring future economic outlook, rose by one point to 33.
Despite these fluctuations, all three indices demonstrated an upward trend as May progressed. However, they continue to indicate pessimism among consumers about the economic situation.
The IHP's Consumer Confidence indices, derived from the Sri Lanka Opinion Tracker Survey, had reached their highest levels in March but have not shown significant improvement since then, with a marginal decline noted in recent months.
The indices, which range from zero to a maximum of 100, with levels below 50 indicating net pessimism, are based on a methodology similar to those used in the United States and Europe. Data is collected through telephone interviews, with a total of 16,862 interviews conducted between October 2021 and June 2024, including 503 interviews specifically in May 2024. Sample sizes vary across indices, adjusted to match the national population demographics.
