|
12 Jun 2008
Shanghai
Consumer confidence worldwide has fallen to its lowest level in several years, according to the latest Nielsen Global Consumer Confidence Index measuring consumer confidence, major concerns and spending habits amongst online consumers in 51 markets. 56 percent of global online consumers and 42 percent of online consumers in Asia Pacific think their country is currently in recession, inflation being cited as the foremost concern.
The Index has dropped to 88 - down six points in the last six months – the largest single drop the Index has recorded in the last three years. (chart 1). Consumer confidence fell in 39 out of 48 markets in the past six months, with New Zealand, USA and Latvia suffering the deepest declines. Among the 39 markets recording a decline in consumer confidence, 15 fell by double-digits.
“Consumers around the world are struggling with the same global issues that are impacting their daily lives. Soaring global oil and commodity prices, rising interest rates and increasing inflation are all affecting the average consumer pocket” said Chris Morley, Managing Director, The Nielsen Company China.
Faced with the sub-prime credit crisis in the US, it is little wonder US online consumers recorded the biggest fall in confidence, dropping 17 points, while in Europe, the Nielsen Consumer Confidence Index dropped six points to 83.
Despite developing markets earmarked to unpin global growth over the next decade, Nielsen Consumer Confidence Indices dropped eight points in Asia Pacific - excluding Taiwan whose confidence rallied in the first half of 2008.. Online consumers in EEMEA and Latin America were relatively more positive with consumer confidence falling only 3 and 4 points respectively. China dropped a further three points, a total of 11 points since last year.
“Regardless of the prospects of on-going strong economies, the immediate day to day pressure on shoppers food spend is starting to take its toll on consumers in Asia Pacific,” said Mr. Morley.
The Japanese appear the most sensitive to global rumblings with consumer confidence plunging 19 points. “Consumer confidence has been hard hit in Japan. On-going concerns over price increases and low wage growth expectations have put Japanese optimism at an all-time low,” said Nonoy Niles, President, Nielsen Asia, Pacific and India.
Consumer confidence in Australia (-11), Hong Kong (-9), Vietnam (-9), Singapore (-9), and the Philippines (-9) also sank. In Australia, continually rising interest rates and an impending budget announcement from a newly elected government left consumers unsteady in this usually bullish market.
With increasing interest rates, New Zealanders are feeling the pinch with 13% indicating they had no spare cash after living expenses, topping the Asia Pacific region. 11 percent of Australians and 11 percent of South Koreans are also out of pocket once essential living expenses are covered. This compared with only three percent of Chinese respondents indicating that their pay packet only covered essentials, the lowest in the region.
Impeding Inflation appeared the main culprit for low spirits with 67 percent of consumers across Asia Pacific citing rising prices as their biggest concern in the event of an economic downturn. Unemployment was the second greatest concern (53%), followed by political instability on 31 percent. Unsurprisingly, given recent food price increases in China, almost eight out of 10 (77%) Chinese online consumers are worried about inflation, up 10 percent from last year.
With an uncertain economic ride ahead, putting some money away remains a high priority. When consumers in Asia Pacific do have a little left over, just over half (57%) choose to put it into savings. This figure is up five percent in the six months from November. 39 percent are still banking on the future, choosing to place their money in stocks or shares. Chinese online consumers who in the past have appeared to favor placing spare cash into stock and mutual funds are now choosing to save as well, with 52 percent choosing to place spare cash into both savings and investments.
“However, with Asia Pacific being home to some of the strongest growing economies globally, the region’s consumers are still among the most confident in the world. Five out of the global top 10 most optimistic markets hail from Asia Pacific,” added Mr. Morley. “And while 42 percent of consumers believe they are currently in recession, of those that don’t think we’re in one now, only 28 percent believe it will escalate into a full blown recession. Chinese online consumers are even more optimistic, with an economy still forecast to show impressive growth over the next few years, only 14 percent felt they were currently in a recession. And for those that don’t think we’re in one now, only one in four felt there would be a recession in the next 12 months”.
About The Nielsen Global Online Consumer Survey
The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, was conducted in April 2008 among 28,153 internet users in 51 markets from Europe, Asia Pacific, North America and the Middle East. The largest half-yearly survey of its kind, the Nielsen Global Online Consumer Confidence and Opinion Survey provides insight into current confidence levels, spending habits/intentions and the major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 markets, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
Chart 1:
51 Markets Covered: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia,Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, United Kingdom, US, Venezuela and Vietnam.
Three markets – Colombia, Venezuela & Israel – added in April 2008; no trend data available from previous survey.
Back to Top
|
