Consumer confidence in the Asia-Pacific region remained high in the second quarter, as seven markets reported indexes above the 100 baseline, according to findings from the Nielsen Global Survey of Consumer Confidence and Spending Intentions. Indonesia (124), the Philippines (121), and China (110) reported increases of two, three and two points, respectively. India (118), Thailand (114), Hong Kong (107), and Malaysia (103) reported declines of two, one, one and four index point(s), respectively.
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.
Spending intentions increased in 10 of 14 Asia-Pacific markets, with respondents from Indonesia, Hong Kong, India and the Philippines leading the shopping spree. More than half of respondents from these markets indicated that spending on items wanted and needed over the next 12 months would be good or excellent.
“Indonesian consumers are keen about the future, and spending should remain robust as Indonesians continue to become more affluent and sophisticated in their needs,” said Catherine Eddy, managing director, Nielsen Indonesia. “Earlier this year, we saw significant increases in minimum wages and this is no doubt fueling the consumption and optimism we are observing. We expect that this will continue throughout the year; however, the government’s decision to decrease fuel subsidies has the potential to dampen consumption and confidence.”
“The healthy growth of Chinese consumer confidence in the latest quarter and the stronger willingness to spend go hand in hand,” said Yan Xuan, president of Nielsen Greater China. “Today, Chinese consumers’ aspirations for a better and higher quality life can be found in all city tiers and in the countryside thanks to the continued increase in personal and household income and ongoing urbanization. The policies of the Chinese government to boost domestic consumption will only further push ahead such momentum.”
“In India, the devaluation of the rupee and continuing inflation are the key drivers of the drop in confidence for Indian consumers,” said Piyush Mathur, president, Nielsen India Region. “Discretionary spending is the first to take the hit, but the maximum impact of the change in spending is seen on families cutting down on out-of-home expenditures. In addition, consumers are being cautious while spending on essentials. The trend is also seasonal as the second quarter is the post incentive, post bonus period when the consumer might actually be looking to control spending.”
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.