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INDONESIA RETAINS IN TOP 10 MOST OPTIMISTIC COUNTRIES IN GLOBAL CONSUMER CONFIDENCE TOGETHER WITH THREE OTHER ASEAN COUNTRIES

Jakarta, 4 November 2015 – While consumer confidence across a number of Southeast Asia markets has taken dips in Q3 2015, the Philippines, Indonesia, Thailand and Vietnam remain among the world’s top 10 most optimistic, according to the latest Nielsen Global Survey of Consumer Confidence and Spending released yesterday.

The Nielsen consumer confidence index measures perceptions of local job prospects, personal finances and immediate spending intentions, among more than 30,000 respondents with Internet access in 61[1] countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

The Nielsen survey shows the Philippines ranked third globally as home to the world’s most confident consumers, although the country posted a quarter-on-quarter decline of five points to a Consumer Confidence Index score of 117. Indonesia closely follows as the market with the fourth most confident consumers, with a score of 116, despite the four points drop from Q2 2015. Meanwhile, Thailand (ranked 5th globally) is flat quarter-on-quarter with 111. Vietnam ranked 10th globally with a Consumer Confidence Index score of 105.

Singapore gained two points to register a score of 101. Meanwhile Malaysia, which posted the region’s lowest Consumer Confidence Index (78) also posted the region’s steepest decline, down 11 points quarter-on-quarter and 21 points year-on-year, largely driven by consumers’ concern around currency devaluation and rising food prices. Globally, consumer confidence rose slightly to 99 in Q3 2015, up three points compared to Q2 2015. (See chart 1).

“Indonesia consumer optimism level still shows a decline in this quarter, caused by decline in three indicators, i.e. optimism towards job prospects in the next 12 months – down from 68% in Q2 to 64% in Q3, optimism towards state of personal finance in the next 12 months – down significantly from 80% to 64% and optimism in spending intentions in the next 12 months – also down from 53% to 49% quarter-on-quarter.” explain Agus Nurudin, Managing Director, Nielsen Indonesia. “ The economic condition in the last six months is more or less in an uncertainty. The increase of USD currency and job termination of course have impacted the level of consumer confidence.”

[1]   Morocco was added to the Global Survey in the third-quarter of 2015, and the country’s index is reflected in the Middle East/Africa regional average.

While the survey revealed that Southeast Asian consumers remain among the world’s most optimistic, they have been less upbeat with recessionary sentiment permeating in three markets out of the six measured in the region. Recessionary sentiment is on the rise in the region, the highest increase in Malaysia with 16 percentage point (pp) increase followed by Indonesia (+10pp). Recessionary sentiment also grew in Thailand, up eight percentage points. In contrast, recessionary sentiments are down in Singapore (-5pp), Vietnam (-3 pp), and the Philippines (-1pp).

The economy, job security, health, work/life balance, political stability, parents’ welfare and increasing utility bills feature prominently in Southeast Asian consumers’ list of key concerns in Q3 2015. The concern on economy increased in Indonesia, whereby in Q2 there are 37% saying that the economy is their main concern and in Q3 the percentage increased to 46%. After the economy, Indonesian consumers’ main concerns are work/life balance (17%) and paretn’s welfare and happiness (15%). (see Chart 2).

CHART 1: NIELSEN CONSUMER CONFIDENCE INDEX, SOUTHEAST ASIA, 2015

Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q3 2015

CHART 2: TOP CONCERNS OVER THE NEXT SIX MONTHS, SOUTHEAST ASIA, Q2 2015

Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q3 2015

ABOUT THE GLOBAL SURVEY OF CONSUMER CONFIDENCE AND SPENDING INTENTIONS

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted Aug. 10 – Sept. 4, 2015 and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample includes Internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of Internet consumers by country. Because the sample is based on those who agreed to participate, no estimates of theoretical sampling error can be calculated. However, a probability sample of equivalent size would have a margin of error of ±0.6% at the global level. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, including the Global Consumer Confidence Index, was established in 2005.

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance.  Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world’s population. For more information, visit www.nielsen.com