Nielsen released the results of its quarterly Global Consumer Confidence Index on Wednesday, with Asia-Pacific being the only region highly bullish about product purchasing.
Quarterly, Nielsen evaluates consumer sentiment towards the global economic climate by surveying 30,000 consumers about job prospects, personal finances and spending and saving intentions.
The results indicate that consumer confidence held steady in Q4 2013 with an overall index of 94 for the third straight quarter. Of the 60 markets Nielsen measured, confidence increased in 26, decreased in 32 and remained consistent in two.
“Asia-Pacific was the only region to post an increase for the quarter, as consumer confidence increased one index point to 105. Regional consumer confidence declined three index points in North America (95), two points in Middle East/Africa (90) and one point in Europe (73). Confidence remained flat in Latin America with an index of 94,” according to a press release from Nielsen.
According to the report, “all confidence indicators indicated marginal gains in Asia-Pacific with a 2-percentage point increase for job prospects (62 percent), a 1-percentage point increase for personal finances (62 percent) and a 3-percentage point increase in spending perceptions over the next 12 months (43 percent). Consumer confidence increased in six of 14 countries, with a robust quarterly jump of 6 percentage points in japan, which posted its highest index since 2005 of 80. China increased one index point in the fourth quarter for a score of 111.”
“The outlook for job prospects in the next year increased in eight of 14 countries, with healthy quarterly confidence in Japan (+8 percentage points), India (+7pp), Indonesia (+5pp), Australia (+5pp) and New Zealand (+4pp). The overall recessionary sentiment in the region fell by 3 percentage points to 44 percent, compared to Q3. While overall confidence in the region was optimistic, cautionary sings prevail as discretionary spending declined across all categories measured.”
Asia-Pacific’s increase in consumer confidence is thought to indicate the region’s growth climate is improving considerably ahead of ASEAN integration in 2015. Most notably, Indonesia reported the highest consumer confidence index (124) for the fourth consecutive quarter, and increased four index points in the fourth quarter of 2013.
Dr. Venkatesh Bala, chief economist at The Cambridge Group, observed “throughout 2013, consumers around the world remained in a virtual holding pattern as global unemployment showed few signs of progress during the year. Recovery continues to move very slowly and is hampered by cash-strapped consumers who grapple with having little discretionary income after paying essential expenses. As 2014 progresses, a brighter outlook is expected, but sluggishness will continue until there is a marked improvement in the jobless rate and wages go up commensurate with rising costs.”
“Growth in developing markets is slowing, and with weaker prospects than before, they are competing for investment and financial resources as advanced economies recover. Recession-minded consumers who are already challenged by rising living expenses showed a reluctance to spend leading up to the holiday season and kept their money in their wallets,” she added.
According to the survey, more than half (57 percent) of global respondents believed their country was in an economic recession, only a one-point decrease from the previous quarter.
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