Jul 23, 2014

    Job worries dent S'pore consumer confidence: Nielsen

    CONSUMER confidence in Singapore remained stable at 98 index points in the second quarter of this year, falling by just one point from the previous quarter.

    Going by the latest Nielsen Global Survey of Consumer Confidence and Spending, Singapore's consumer confidence has remained below 100 points for three years since Q2 of 2011.

    Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

    Consistent with their cautious confidence levels, two in three consumers in Singapore polled said that, after covering essential living expenses they would channel their spare cash into savings.

    The marginal pullback in consumer confidence in the second quarter was driven by a three-point increase, from the previous quarter, to 41 per cent of consumers who feel that future job prospects would not be positive, said Nielsen.

    Singapore's latest consumer confidence is also on a par with the global average of 97 index points, which has risen by one point compared to Q1 of this year.

    This is the highest level since the first quarter of 2007.

    "The most recent data on consumer confidence in Singapore signal a continuing conservatism when it comes to spending and managing expenses," said Luca Griseri, head of financial services in Nielsen Singapore and Malaysia.

    "In the second quarter, Singaporeans worry more about their job perspectives - which is reflected in a lingering cautious sentiment. While this caution has not yet resulted in significant cutbacks in spending, it leads to more conservative attitudes from consumers."

    Globally, India overtook Indonesia as the most optimistic consumer market, while Japan and Hong Kong saw the biggest declines in confidence from the previous quarter.