Singapore consumers slightly more confident: Nielsen

Singapore consumers slightly more confident: Nielsen
PHOTO: Singapore consumers slightly more confident: Nielsen

SINGAPORE - Consumer confidence in Singapore showed a slight improvement in the first quarter of 2013, according to the latest global consumer confidence findings from Nielsen.


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SINGAPORE CONSUMER CONFIDENCE REMAINS BUOYANT IN Q1 2013

Singaporeans more optimistic about the future of the economy, job prospects and personal finances; consumer spending intentions increasing.

Consumer confidence in Singapore remained stable throughout the first quarter of 2013, according to the latest global online consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy. Singapore consumer confidence indexed at 96 in Q1 2013, a one-point increase from the previous quarter (Q4 2012) and has remained at the same level year-on-year.

Singapore now ranks in eighth position within 14 Asia Pacific countries in terms of consumer confidence, ahead of Australia, Vietnam, New Zealand, Taiwan Japan and Korea. Consumers in Indonesia are the most confident in Asia and globally (122 points). The average Index for Asia Pacific in Q1 2013 remains at 101 points and the region continues to lead the ranks globally as the most confident region. Globally, consumer confidence increased 2 points to 93.

"Our latest survey results show that consumers in Singapore are feeling slightly more upbeat about their job prospects, personal finances and the future recovery of the economy. The strengthening consumer outlook was also reflected in spending intentions," said Luca Griseri, Head of Financial Services, Nielsen Singapore and Malaysia. "We saw improvements in economic sentiments across the globe and in particular in our region where Hong Kong, Japan, South Korea, and Taiwan posted double-digit confidence increases."

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 29,000 respondents with Internet access in 58 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

In the latest round of the survey, conducted February 18-March 8, 2013, consumer confidence rose in 60 per cent of global markets measured by Nielsen, compared to a 33 per cent increase reported in Q4 2012.

Consumers more optimistic about the economy and job prospects

In the first quarter of 2013, consumers surveyed in Singapore showed more confidence in the future of the economy and in their future job prospects. The proportion of Singaporeans who feel Singapore is in a recession went down 5 percentage point to 28 per cent in Q1 2013. Among those who believe the country is in recession, 31 per cent think the economy will recover over the next 12 months, up 2 percentage points from a quarter earlier.

Singaporeans surveyed are feeling more positive where job prospects are concerned, with almost 1 in 2 saying prospects are excellent/good, up 3 percentage points from 46 per cent a quarter earlier.

More optimistic about personal finances and consumers' intention to spend increased The Nielsen report also revealed a one percentage point increase in consumers' outlook on their personal finances this quarter, with more than half (54 per cent) of Singapore consumers considering their personal finances over the next twelve months to be "good" or "excellent". Across last year, men in Singapore had a more positive outlook of their personal finances than women.

The survey highlighted that consumers showed signs they are slightly more upbeat in Q1 2013 about spending. The number of consumers surveyed that indicated the next 12 months will be a good time to buy things they need or want has increased, up 2 percentage points from 33 per cent a quarter earlier. Men in Singapore had more favourable purchasing perceptions than women across last year and especially in this quarter (42 per cent, as compared to 29 per cent).

Singaporeans have more spare cash to spend in Q1 2013, up 3 percentage points to 10 per cent from the last quarter. While the majority of Singaporeans surveyed continue to channel spare cash into savings, up 6 percentage points from the previous quarter to 64 per cent, consumers indicate increased intention to invest their spare cash in shares of stock/mutual funds, up 3 points to 27 per cent. In the first quarter of 2013, men in Singapore were more likely than women to invest their spare cash in shares of stock/mutual funds (35 per cent as compared to 19 per cent), whereas women tended to save their spare cash more than men (21 per cent as compared to 17 per cent).

"Investments into stocks and mutual funds have increased, despite the volatility in the global markets. The interest rate environment may have prompted Singaporeans to invest in higher-return alternatives. Singaporeans demonstrate a solid desire to save and invest, which presents significant opportunities for the financial services industry to expand the range of wealth management solutions in order to preserve and grow consumers' wealth," said Griseri.

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