In Nielsen’s latest Survey of Consumer Confidence and Spending Intentions, global consumer confidence edged up in the third quarter to a score of 98—an increase of one point from the previous quarter and two points from the start of the year. And survey respondents in Latin America reflect the global outlook of cautious optimism.
Confidence in the region increased one index point to a score of 91 in the third quarter, as three of seven countries measured registered a quarterly uptick. The highest confidence score in the region came from Brazil, which increased one point to 101, while Mexico (88) and Colombia (98) increased three points each from the second quarter. Conversely, consumer confidence declined in Chile (85), down seven points; Venezuela (70), down two points; and Peru (97), down one point in the third quarter.
“In Brazil, while consumer confidence increased marginally in the third quarter, rising inflation and growing interest rates continue in the country,” said Luis Arjona, cluster leader, Nielsen Brazil. “While consumer confidence is just above the optimism baseline of 100, it is still below last year’s performance, which averaged an index of 109.”
“The Mexican economy, the second-largest in Latin America, is in a moderate recovery phase after the first half of 2014,” said Germán Gutiérrez, cluster leader for Nielsen Mexico and Central America. “The Economic Activity Indicator (IGAE) reported a real cumulative increase of 1.87% in the first seven months of this year, and the number of workers receiving Mexican Social Security (IMSS) rose 3.7% in August 2014, compared with the prior year. The manufacturing sector also improved in July 2014, rising 5.95% annually. These positive trends bode well for moderate increases in Mexican household consumption for fast-moving consumer goods during the last quarter of 2014.”
Discretionary spending intentions in the region showed marginal quarterly increases of 3 percentage points for out-of-home entertainment (32%) and new clothes (29%); and 2 percentage points for holidays/vacations (22%), new technology products (20%) and home improvements (20%). Paying off debts/credit cards/loans was the priority among one-third of respondents (32%), a quarterly decline of 2 percentage points.
Job security was the biggest or second-biggest concern in the Latin America region for 25% of respondents, a decline of 1 percentage point from the second quarter. Worries about the economy, however, increased 2 percentage points to 26%. Other concerns included crime (21%) and health (20%), which each decreased 1 percentage point.
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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For more detail and insight, download Nielsen’s Global Survey of Consumer Confidence and Spending Intentions.
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.