Singaporeans’ consumer confidence for Q2 2016 has remained stable at 88 points, constant from last quarter. Singaporeans were most concerned about job security (35%, as compared to 32% in Q1 2016). Furthermore, 62% of locals have indicated ‘bad’ and ‘not so good’ perceptions on local job prospects in the next 12 months (increased by 3% from 59% in Q1 2016). Worries on debt have also increased (14%, as compared to 9% in Q1 2016). Despite that, apprehension over an economic recession has improved (49%, as compared to 52% in Q1 2016.
“Singapore’s economy has seen a slight improvement in the second quarter,” said Joan Koh, Managing Director, Singapore and Malaysia, Nielsen. “However, we are not out of the woods yet as the increased unemployment rate and concerns over mixed performances from various industries continue to cloud the minds of locals.”
Based on observations over the last few quarters, financial security in the likes of putting excess cash in savings, payment of debts, loans, and investments in financial tools such as shares remained on the top of the minds in Singaporeans.
Survey findings also revealed that consumers have reduced certain discretionary expenditures - less spending on home improvement and decorative expenses (12%, as compared to 17% in Q1 2016), and purchases of new clothes (26%, as compared to 28% in Q1 2016). In addition, respondents have indicated that they will continue to spend less on new clothes (36%), save on gas and electricity (31%) and switch to cheaper grocery brands (31%) when economic conditions improve.
Conversely, Singaporeans are still amongst the top spenders on holidays and vacations. Consumers are spending more on out-of-home entertainment (18%, as compared to 15% in Q1 2016) and on new technology products (21%, as compared to 20% in Q1 2016).