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3 February 2006
Singapore
Consumer confidence in their local economies, job prospects and their personal financial situation is on the rise globally. The Consumer Confidence Index introduced by ACNielsen earlier this year grew from the average 92 points in May 2005 up to 98 points in November, with two thirds of countries seeing it rise.
The world’s most optimistic consumers live in Asia-Pacific and North America. India maintains the biggest confidence. In Singapore, consumer confidence is seeing growth, with its ACNielsen Consumer Confidence Index having risen by four points since the last survey to hit 103—surpassing the global average by five points.
These are among the findings from the latest global online survey by ACNielsen, the world’s leading market research and information company. The survey, conducted in November 2005, polled over 23,500 respondents – regular Internet users – in 42 markets.
On job prospects and personal finances
Consumers in Asia-Pacific continue riding on a wave of economic development, the confidence index increasing in nine out of 13 markets. India has made even bigger leap in faith and stays on top of the global list with its confidence index at 132 points – nine points ahead of the world’s second ‘most optimistic’ nation, New Zealand. Even the Japanese and South Koreans, with the lowest confidence indices globally, have improved their forecasts of the future. In Japan, 45% more people believe in better job prospects over the next year, compared to the number in May 2005. Although only up to one fourth of respondents in Japan and South Korea lay positive hopes on the future state of their personal finances, opinions have increased that now is a good time to buy things they want and need. Marketers of consumer goods and services, however, shouldn’t expect too much here, for the study shows that Asians are the world’s most saving people, with 52% of them putting spare money away for a rainy day.
In Singapore, consumers are certainly poised for a better year ahead where the local economy and job status are concerned.
“Our findings reveal that concerns for the economy and job security dropped even before the latest economic data was released by the government. Positive economic growth of 5.7 percent in 2005 and continued growth forecast by the local government have painted a more optimistic outlook for next year and helped raise consumer sentiments,” commented Mr Ashok Charan, Managing Director of ACNielsen Research Singapore. (Chart 2)
He added, “The recent release of unemployment figures dropping to 2.5 percent also corresponds with optimistic consumer sentiments on the job front as reflected in our survey. The percentage of Singaporeans optimistic about job prospects over next 12 months was increased from 60 percent from our June 2005 survey to 71 percent in the latest year-end one.”
People spent more on entertainment in summer
Speaking of what consumers do with the money left after covering essential living expenses, the summer season has clearly left its footprint on the spending pattern. Out of home entertainment, new clothes and holidays have come on top of the global list after savings, leaving the dull necessity of paying off debts and loans for the winter. This trend was mostly driven by European countries.
Asians, Australians and New Zealanders are mostly focused on savings and debt pay-offs – the global Top 10 for savings featured Asian countries only. However, holidays came in-between second on the list, with 35% of Asia-Pacific Internet users giving their spare cash for rest and travelling.
Singapore is once again amongst the top three markets of savers in Asia Pacific, with close to three in every five Singaporeans saying they would put their spare cash into savings. And taking holidays/vacations continue to be on top of Singaporeans’ agenda when it comes to what to spend their money on. Close to half the respondents (48%) said they would spend their money on holidays/vacations. Next on their priority list is Paying off debts/credit cards/loans (32%), which is followed by New clothes (29%) and New technology (29%).
Major Concerns
Globally, consumers continue to rank their major concerns as the economy, job security and health.
The economy is the biggest concern for most of the Asian countries, as well as the US, while job security is the top issue for Latin Americans. Health is the biggest or second biggest concern in Europe and North America with their ageing population. Polish consumers are worried over political stability, following the recent change of the country president.
The economy remains the key concern amongst Singaporeans, although it has registered a slight dip from six months ago. A significant increase in level of concern is seen in Terrorism and Health, where hikes of 15 percent and 7 percent are recorded respectively.
He added, “There has been substantial news coverage recently on cases of terrorist attacks and Avian flu, in other part of the world, although Singapore is not directly affected, these reports have heightened awareness and concerns of the public towards these issues.”
The ACNielsen Online Consumer Confidence Survey, the largest twice-yearly global survey of its kind, is aimed to gauge consumers’ current confidence levels, spending habits/intentions and current major concerns. The most recent wave of the survey took place last month (November 2005) and polled over 23,500 consumers – regular Internet users – in 42 markets in Europe, North and Latin America, Asia-Pacific region, Africa (South Africa) and the Middle East (UAE).
Click here to download report.
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