Four SEA nations among globe’s most optimistic in terms of consumer confidence

Despite declines in optimism in 3Q15.

While consumer confidence across a number of Southeast Asia markets has taken dips in Q3 2015, it has been noted that the Philippines, Indonesia, Thailand and Vietnam remain among the world’s top 10 most optimistic.

According to a release from Nielsen, this is based on its latest Nielsen Global Survey of Consumer Confidence and Spending released recently.

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 611 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.

Here’s more from Nielsen:

The year-on-year trend for the Philippines was up two points, however. Indonesia closely follows as the market with the fourth most confident consumers, with a score of 116, dropping four points from Q2 2015 and down nine points year-on-year, while Thailand (ranked 5th globally) is flat quarter-on-quarter with 111 and down marginally (2 points) compared to the same quarter a year ago. Vietnam ranked 10th globally with a Consumer Confidence Index score of 105, up one point quarter-on-quarter and up three points year-on-year.

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.

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, with notable double-digit percentage points increase in Malaysia (+16pp) and 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.

“With the exception of Malaysia, Southeast Asian confidence levels are still tracking above the global average, but the past few quarters have seen some tapering in some markets which is reflective of softening in the region’s economy,” notes Regan Leggett, Nielsen Client Service Director in Southeast Asia, North Asia and Pacific.

“Concerns about the economy, political stability and the increasing cost of living are causing apprehensions for consumers in some markets, leading them to pull back on spending.”