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Consumer Confidence Index increased compared to the first quarter 2016
Recessionary sentiment kept decreasing
Concern on The Economy declined
Jakarta, 04 Agustus 2016 – Indonesian online consumers’ optimism keeps improving, as shown by the increase of the Consumer Confidence Index from 117 percentage point in the first quarter of this year to 119 in the second quarter. This is according to the latest findings of Global Survey of Consumer Confidence and Spending Intentions Q2 2016 recently released by Nielsen.
Two indicators of Consumer Confidence increased for Indonesia, i.e. confidence on Future Job Prospects where 7 out of 10 consumers (increased three point percentage compared to the first quarter this year) stated they are confident that the job prospects in the next 12 months will be good or excellent; and confidence on Spending Intentions with 54 percent (increased two percentage points compared with the previous quarter). Meanwhile, the confidence on Future Personal Finance was quite stable with 81 percent, declined only one point compared to the previous quarter.
Indonesian online consumers’ perception over the economic recession also kept improving since end of last year. The percentage of consumers who agreed that the country is in an economic recession decreased from 69 percent in the last quarter of 2015 to 58 percent in the first quarter of this year, and in the second quarter of the 2016 it went down again to 51 percent.
“Indonesian consumers slowly gained back their confidence in the past three quarters, and this is a good indication for industry practitioners.” said Agus Nurudin, Managing Director, Nielsen Indonesia. “Brand owners, manufacturers and retailers have to be observant in seizing the opportunities to engage consumers, by offering benefits and values that are based on comprehensive understanding on what consumer needs and wants.”
The Economy, Crime and Work/Life Balance are on the top three major concerns of Indonesian consumers this quarter. The percentage of consumers who are most concerned about The Economy slightly decreased in this quarter to 38 percent, from 40 percent in the first quarter. However, the concern over Crime increased whereby 20 percent of consumers stated their concerns, compared with 17 percent in the previous quarter. Meanwhile, concern on Work/Life Balance went down to 15 percent compared with 18 percent in the previous quarter.
In terms of spare cash utilization after covering essential living expenses, in this quarter 70 percent consumers stated that they put it in savings, 43 percent went on vacation/holidays and 32 percent invested it in stocks/mutual funds. On the other hand, in terms of saving strategies, the trend in this second quarter of the year is similar with the one in the first quarter, with 47 percent consumers stating that they cut expenses for out-of-home entertainment, 46 percent delayed upgrading technology and 45 percent cut down expenses for buying new clothes.
According to the Nielsen Global Survey of Consumer Confidence and Spending Intentions Q2 2016, Global consumer confidence was flat in the second quarter of 2016, with an index of 98, unchanged from the first quarter. In North America, U.S. consumer confidence maintained an optimistic level with a score of 113, an increase of three points from the first quarter. In Europe, in the weeks before the U.K. referendum on leaving the European Union, confidence was largely stable at 79, showing a one-point increase from the first quarter.
In Asia-Pacific, confidence was relatively stable at 107, a one-point decrease from the first quarter. In Latin America, confidence remained at 78, unchanged from the first quarter. In the Middle East/Africa, confidence was stable at 89, a one-point increase from the first quarter. The Economy remained a
top concern for the majority of respondents around the world, and terrorism is a leading concern in Europe.
ABOUT THE NIELSEN GLOBAL SURVEY OF CONSUMER CONFIDENCE AND SPENDING INTENTIONS
The second-quarter online survey was conducted May 9–27, 2016. The findings in this survey are based on an online methodology in 63 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 is still growing, audiences may be younger and more affluent than the general population of that country. Three sub-Saharan African countries (Ghana, Kenya and Nigeria) utilize a mobile survey methodology and are not included in the global or Middle East/Africa averages discussed throughout this report. In addition, survey responses are based on claimed behavior, rather than actual metered data. Cultural differences in reporting sentiment are likely factors in the measurement of economic outlook across countries. The reported results do not attempt to control or correct for these differences; therefore, caution should be exercised when comparing across countries and regions, particularly across regional boundaries.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. The Company’s Watch segment provides media and advertising clients with Nielsen 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% of the world’s population. For more information, visit www.nielsen.com .