Consumer Confidence: A Recovery Driven by Employment and Rising Incomes
The beginning of 2025 marks a remarkable increase in Mauritian consumer confidence.
According to the quarterly study conducted by Analysis, affiliated with Kantar, the confidence index reached 80.4, reflecting an increase of 10.8 points compared to October 2024. This growth indicates a continued improvement in household morale, primarily driven by labor market stability and rising incomes.
A Booming Job Market
With an index reaching 95, Mauritius’ job market is at its highest level since 2020.
This positive trend spans all socio-professional categories, although individuals in categories C2 and DE (low- and semi-skilled jobs) still face challenges in assessing market developments. Employment prospects remain promising, with an index of 93, signaling a favorable climate for professional stability.
Rising Incomes Support Consumption
The household income index is nearing 90, continuing the positive trend that began in 2022.
This growth is the result of minimum wage increases, which have strengthened households’ purchasing power. According to the biannual household budget balance survey, 76% of Mauritians consider their income to be average or above, promoting a gradual recovery in consumer spending.
Improved Purchasing Intentions
The index measuring purchasing intentions for durable goods, after a slump caused by inflation and the pandemic, is now approaching its pre-COVID level.
This recovery reflects renewed confidence in households’ ability to invest in high-cost goods, although cautiousness persists in the face of economic uncertainties.
Impact of Government Change on Economic Perceptions
The change in government has significantly impacted the perception of the country’s economic trajectory.
The percentage of pessimists fell from 54% in October 2024 to 27% in January 2025, reflecting hopes for improved living conditions. However, 47% of consumers remain undecided, indicating that concrete results are expected before full confidence is restored.
The study reveals a gradual and solid recovery in Mauritian consumer confidence, supported by a dynamic job market and rising incomes.
If this trend continues, it could foster economic growth on the island and stimulate household consumption. However, consumer caution suggests that long-term confidence will depend on the tangible outcomes of implemented economic policies.
25 February 2025
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