Consumer confidence remains strong in Singapore : Nielsen

Singaporeans pegged the nation’s Consumer Confidence Index at 109 points in the quarter, which remained unchanged over Q4 2010. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Singapore was ranked the seventh most confident country globally this quarter, the survey showed. It also stated that 64 per cent of the consumers believe the state of their personal finances is ‘excellent/good’, while 45 per cent said that now is an excellent/ good time to buy the things they want.

Seven out of the top ten optimistic countries in the world hailed from Asia-Pacific, with India (131 index points) tops the list, followed by Indonesia (116), Australia (110), the Philippines (110), Singapore (109), China (108), and Hong Kong (107). 

The Philippines posted the highest increase of 10 index points. In China, the world’s second largest economy, confidence rose eight points to an index of 108.

At the Asia-Pacific level, consumer confidence jumped 10 points from Q4 2010 to reach 107 – its highest score on record.  Confidence in Asia was boosted by continuing high employment, which is energizing consumers to spend again.

Joan Koh, managing director, Singapore, Nielsen, said, “Consumers are showing some readiness to spend. Many flocked to the travel fairs for the best deals and booked their holiday plans. This year’s Great Singapore Sale will welcome new mall entrants, presenting more choices and making it more convenient for consumers to shop, while retailers are confident that the annual Sale will hit its targeted sales increase.”

She explained that although consumers continue to be optimistic about their finances and intend to spend, more of them are putting cash into their savings and investing in stock/ mutual funds compared to Q4 2010. Global events, such as the political unrest in the Middle East, fiscal uncertainties in various European countries, and natural disasters in the region cast doubts over the momentum of recovery from the global recession.

"Thus, many feel that it would be prudent to save for rainy days, or are taking advantage of relatively cheaper asset valuations to get into the market,” she explained.