Consumer confidence increases in Q2

A research conducted by Nielsen Global Consumer Confidence Survey shows that consumer confidence was improved during the second quarter, as uncertainties over employment security and the financial system faded.

As determined by a June survey of 500 online consumers, Singapore's consumer confidence index increased to 87 from 80 recorded in March.

Employment security and economy remained as people's major concerns over the succeeding six months, but worries have lessened. Forty percent of respondents mentioned these as their major concerns in June, compared with 50% in March.

The most recent survey also revealed that 79% of respondents believe Singapore is experiencing recession, down from 91% in March, but there was augmented optimism about recuperation. Thirty-nine percent were certain that this downturn will end next year, compared to 28% last March.

Singapore came out from a technical collapse – described as two successive quarters of depressing growth - in the Q2, with GDP rising 20.7% from Q1.

Worldwide, the June poll of more than 14,000 consumers within 28 markets revealed comparable development in buyer sentiment. The worldwide index increased five points from March, to 82 in June.

This was encouraged particularly by improved consumer buoyancy and stock market profits in the rising BRIC (Brazil, Russia, India, and China) markets, and other major Asian economies as well.

Paul Richmond, managing executive of the Nielsen Company's consumer group for Singapore and Malaysia said that to a greater extent than in other districts, stock markets located in Asia have rallied and prices of properties are elevating.

He said, "Consumers in the emerging and Asian markets are clearly of the view that they are driving in the recovery lane now".