East Africa’s pioneering Investment Management Firm ICEA LION Asset Management today launched the ILAM
Consumer Spending Index, with the theme ‘Consumer spending relatively resilient the third quarter of 2023?’
Speaking at the event, Judd Murigi, Head of Research at ICEA LION Asset Management highlighted the following key
• Introducing the ILAM Consumer Spending Index
The index is aimed at tracking consumer spending as a gauge of how the real economy is trending. It is based on
interviews of 500 consumers and 100 retail businesses in the greater Nairobi area.
• ILAM Consumer Spending Index declines by 1.5% in the third quarter of 2023
The individual spending sub-index fell by 3% between July and September 2023 while the retail business sales subindex remained broadly flat in the same period, resulting in a decline of 1.5% in the overall consumer spending
index (which is weighted 50% by changes in individual spending and 50% by changes in retail business sales).
• Relative resilience
This was a relatively resilient level of consumer spend in the 3rd quarter considering the perception that disposable incomes had reduced. However, we note that many consumers attributed the additional spending to an increase in the cost of items purchased rather than higher income per se. At the same time we also note that the spending came
in spite of continued slowed private sector credit.
• Semi and unskilled manual workers reduce spending the most
While all categories (executive, skilled and unskilled workers) had reduced spending levels in the third quarter of
2023, the lower income consumer segment had the largest proportion (9%) experiencing reduced personal
consumption expenditure in that period
• Income levels fairly stable overall
37% of individuals indicated that their income did not change between 2022 a Index (ICSI) “Consumer spending relatively resilient between July and September 2023”