Consumer confidence in Asia-Pacific recorded an index score of 107 in the third quarter, extending its optimistic streak yet again. The region's score has remained above the baseline score of 100 for nearly three years, dating back to the first quarter of 2012.
On top of that, confidence increased in 71% of the markets measured in the latest quarter. India (126) remained on top, with the highest confidence index in the region despite dropping two points compared to the second quarter. China’s index held steady at 111 for the fourth consecutive quarter. Nine of 14 countries in the region reported index scores above the baseline of 100.
“In India, overall, the confidence index continues to hold near its previous levels with the euphoria around the recently elected government settling down,” said Piyush Mathur, president, Nielsen India Region. “The consumer in India is in the middle of a festival season, and so spending will likely be higher than previous quarters due to gifting and entertaining. Besides traditional offline retailers, e-commerce is gaining traction for the urban affluent shoppers in India, and online retailers have been spurring the market with discounts to fuel this movement. The actual impact of this on consumer spending might be more evident towards the end of the year.”
“In China, the sustained strong consumer confidence result can be attributed to rising disposable income levels, as wage increases and future job prospects exceed low inflation levels by a wide margin,” said Patrick Dodd, managing director, Nielsen China. “As their wealth increases, Chinese consumers’ spending habits are switching from basic daily necessities to upgraded products and services. Another key driver is the convergence of city-tiers. As consumers in lower-tier cities start to spend like Tier 1 consumers, it is a positive sign for future gains in domestic consumption levels.”
Australia (97) returned to consumer confidence levels posted in 2013 with an increase of one point from the same period last year (Q3 2013). Confidence also increased eight points in Thailand (113); six points in Malaysia (99); five points in Singapore (103); four points each in Hong Kong (107), Vietnam (102), Taiwan (79) and Japan (77); and two points in Indonesia (125).
The Philippines (115) was the only Southeast Asian country in which confidence declined, decreasing five points from the second quarter. South Korea had the lowest index in the region at 52, representing a one-point decline from the second quarter.
“In Japan, consumer confidence recovered moderately in the third quarter, as the employment environment improved slightly,” said Toshihiro Fukutoku, managing director, Nielsen Japan. “Another positive sign was a rise in the Nikkei Stock Average, which increased 9.1% between April and September. Amid the current environment of wage erosion, inflation and export decline, however, personal consumption may decrease, so we are monitoring closely.”
For a deeper look at the survey findings, view nine years of historical consumer confidence data with Nielsen’s Global Consumer Confidence Trend Tracker. The tool allows you to explore data, compare markets and see trends with just a click.
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The findings in this survey are based on respondents with online access across 60 countries. While an online survey methodology allows for tremendous scale and global reach, it provides a perspective only on the habits of existing Internet users, not total populations. In developing markets where online penetration has not reached majority potential, audiences may be younger and more affluent than the general population of that country. Additionally, survey responses are based on claimed behavior, rather than actual metered data.