Analysts cautious in spite of consumer confidence uptick in December

But 2015 might be a more constructive year.

The ANZ-Roy Morgan Singapore Consumer Confidence inched up by 0.9 points to 121.8, in December, and is now just above the 2014 average of 121.1.

However, ANZ notes that the uptick is no real cause for joy, as the granularity of their survey data hardly suggests a rebound in consumer confidence is in the offering.

ANZ notes that 2014 may well be the trough in Singaporean confidence, and 2015 may prove to be a more constructive year.

“The optimistic conclusion would be that Singaporean consumer confidence could be in the process of basing, and 2015 may prove to be a more constructive year. We will reserve judgement for now, as significant challenges such as supply-side restructuring and downward pressure on property prices remain high hurdles for confidence to overcome in 2015,” said ANZ Chief Economist South Asia, ASEAN & Pacific, Glenn Maguire.

Here’s more from the report:
In terms of personal finances now 27% (unchanged) of respondents say their families are ‘better off’ financially than a year ago compared to just 11% (down 2ppts) that say they are ‘worse off’ financially.

Now 31% (up 2ppts) of respondents say they expect their families will be ‘better off’ financially in a year’s time compared to only 8% (up 1ppt) that expect their families will be ‘worse off’ financially.

Thinking of economic conditions in Singapore going forward, just under half of respondents (unchanged at 48%) expect Singapore will have ‘good times’ economically over the next twelve months, compared to just 11% (down 2ppts) that expect ‘bad times’ economically.

Over the longer-term, 45% (unchanged) of respondents now expect Singapore will have ‘good times’ financially during the next five years and only 9% (down 2ppts) expect ‘bad times’ financially.

17% (down 1ppt) of respondents say now is a ‘good time to buy’ major household items, while 20% (up 2ppts) say now is a ‘bad time to buy’ major household items.