Press Room

Singapore Consumer Confidence Index declines to 89 in the third quarter of 2019, lowest in two years

SINGAPORE, 21 November 2019 – The Singapore Q3 2019 consumer confidence index has dipped to 89 points, its lowest in two years, according to the Conference Board Global Consumer Confidence Survey™, in collaboration with Nielsen.

Despite half of the Singaporean population (51%) holding a positive view about the state of their personal finances in the next 12 months, consumer confidence for the third quarter of 2019 does not reflect that sentiment.

The survey found that the top five concerns among Singaporeans in Q3 2019 are: the economy (37% vs 32% in Q2 2019), job security (32% vs 32% in Q2 2019), health (19% vs 19% in Q2 2019), work-life balance (17% vs 15% in Q2 2019), and increasing food prices (15% vs 19% in Q2 2019). [See chart 1]

CHART 1: TOP 5 CONCERNS AMONG SINGAPOREANS, Q3 2019 (%)

Source: The Conference Board® Global Consumer Confidence™ Survey, in collaboration with Nielsen (Q3 2019)

INCREASED APPREHENSION OVER ECONOMIC OUTLOOK

Amid global trade-related tensions and uncertainties, Singapore’s slowing GDP growth and concern about unemployment rates may be a reason for the undermining of consumer confidence. The same sentiment is widespread among the Asia-Pacific region, as its top concern is also about job security (23%). Singaporeans’ view on job prospects in the next 12 months has been on a steady decline, as only one in three respondents is optimistic about it (34% vs 42% in Q2 2019, 45% in Q1 2019). [See chart 2]

When asked about recessionary sentiments, more than half of respondents (56%) believe that they are currently in a recession (vs 42% in Q2 2019, 36% in Q1 2019). This may have led to the drop in willingness to spend on things they want or need (37% vs 38%). [See chart 2]

CHART 2: KEY DRIVERS OF CONSUMER CONFIDENCE INDEX, SINGAPORE, Q3 2019 (%)

Source: The Conference Board® Global Consumer Confidence™ Survey, in collaboration with Nielsen (Q3 2019)

In view of the global macroeconomic environment, the top action taken by consumers is to put their discretionary cash into savings (62%). One-third of them invest in retirement funds (33%), which is a 4% increase compared to the previous quarter, suggesting that Singaporeans are still prudent when it comes to saving up for a rainy day. [See chart 3]

CHART 3: AREAS WHERE CONSUMERS ALLOCATE THEIR SPARE CASH, SINGAPORE, Q3 2019 (%)

Source: The Conference Board® Global Consumer Confidence™ Survey, in collaboration with Nielsen (Q3 2019)

About Nielsen

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Nielsen is divided into two business units. Nielsen Global Media, the arbiter of truth for media markets, provides media and advertising industries with unbiased and reliable metrics that create a shared understanding of the industry required for markets to function. Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and insights and a complete picture of the complex and changing marketplace that companies need to innovate and grow.

Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge.

An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

ABOUT THE GLOBAL SURVEY OF CONSUMER CONFIDENCE AND SPENDING INTENTIONS

The Nielsen Global Survey reaches over 30,000 Internet users around the world every three months—representing a global online population of close to 2 billion consumers. The survey was established in 2005 and is used to gauge consumer sentiment in the economy, follow consumers spending intentions and monitor changing habits. The survey currently spans 64 countries. From Q4 2017 the survey is known and branded as The Conference Board® Global Consumer Confidence™ Survey, in collaboration with Nielsen.The Conference Board is a global, independent business membership and research association. For more information refer here.