Consumer confidence in Latin America decreased for the second consecutive quarter in Q2 2013, declining one index point to a score of 93 from 94 in Q1, according to findings from the Nielsen Global Survey of Consumer Confidence and Spending Intentions. Brazil led the region with the highest index of 110, which was down two points from the prior quarter. Positive sentiment was reported in Peru (99) and Colombia (87), where confidence increased one and seven index points, respectively. Consumer confidence in Venezuela (68) declined for a third consecutive quarter, while confidence in Chile (94), Argentina (68) and Mexico (84) dropped for the second straight quarter.
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.
The dip in the region’s overall consumer confidence in the second quarter did not negatively affect discretionary spending intentions, however, as the survey measured marginal increases in spending across most categories. Spending plans for new clothes (25%) increased two percentage points, and intent to spend on new technology (18%), home improvement projects (17%) and holidays/vacations (17%) inched up by one percentage point each.
“Current economic conditions in Brazil, especially low GDP growth and high inflation, are affecting consumer confidence,” said Eduardo Ragasol, country manager, Nielsen Brazil. “Government efforts, such as temporary tax reductions and credit stimulus measures aimed to reignite investments, have failed to fuel economic growth at the pace needed to keep infrastructure and supply side of the economy, thus producing price increases.”
Other findings include:
For more detail and insight, download Nielsen’s Q2 2013 Global Consumer Confidence Report.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted between May 13-31, 2013, and polled more than 29,000 online consumers in 58 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10 million online population for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China.