Jamaicans delay major purchases as living costs rise and business confidence stays weak

New consumer research for the quarter ending June 2026 indicates that many Jamaicans are postponing large purchases such as homes and vacations as the cost of living climbs, though a notable share still intend to buy motor vehicles.

Market Research Services Chairman Don Anderson told RJR News the continued appetite for vehicles is driven largely by the country's inadequate public transportation network, which leans heavily on close to 40,000 taxi operators and the Jamaica Urban Transit Company.

Anderson said the share of households receiving remittances has slipped from a peak of 38 per cent five years ago to 27 per cent in the second quarter of this year, and he expects difficult conditions to persist until the economy strengthens. He noted that consumer confidence eased 2.3 per cent in the second quarter, a milder decline than the 5.7 per cent drop recorded in the first, with sentiment shaped mainly by the availability of well-paying jobs and the level of remittance inflows.

Immediate past president of the MSME Alliance Donovan Wignall said confidence among micro, small and medium-sized firms remains low, weighed down by high energy costs, the rising cost of capital and accelerating inflation. He told RJR News those pressures are lifting operating expenses while sapping consumer demand, forcing many operators to pass higher production costs to customers and eroding profitability.

Wignall noted that the recently launched micro market on the Jamaica Stock Exchange gives MSMEs a route to raise between $50 million and $100 million in equity financing, but he cautioned that only a limited number of enterprises will qualify and the benefits will take time to materialise. He urged operators to stay optimistic and keep building their businesses.

State-owned refinery Petrojam announced fuel price increases for the trading period beginning July 23, 2026. E10 87 rises $3.06 to $204.40 a litre and E10 90 climbs $4.50 to $213.26. Automotive diesel oil increases $4.50 to $223.50, ultra-low sulphur diesel moves up $4.50 to $239.08, and kerosene gains $4.50 to $196.41. Propane cooking gas edges up 25 cents to $77.96 and butane rises 25 cents to $86.93 a litre, before retailer markups.

On the equities market, TransJamaican Highway Limited led activity with 2,133,123 units, or 17.02 per cent of sales, followed by Derrimon Trading Company Limited at 1,193,232 units (9.52 per cent) and Wisynco International Limited at 1,090,759 units (8.70 per cent).

Bank of Jamaica data for July 23, 2026 showed the US dollar selling at $159.47 and buying at $157.35, the Canadian dollar selling at $113.18 and buying at $112.63, and the British pound selling at $211.91 and buying at $210.92.