Consumer confidence dips in September as economic volatility grips Singapore

Last month’s SG50 boost failed to hold up.

More locals are fearing the worst for the city-state's economy with the latest ANZ-Roy Morgan Singapore Consumer Confidence index retreating to 129.6 points.

The survey said that there was significantly greater economic uncertainty from August to September, driven by the ongoing slowdown in the Chinese and regional economies.

This caused the index, which has been on an uptrend for several months, to dip in September.

"Looking ahead, we expect continued normalisation in the recent upswing in consumer confidence, especially as households could be spooked by the global equity rout and the sharp moderation of China’s economic growth," said Glenn Maguire, ANZ chief economist for South Asia, ASEAN & Pacific.

For instance, Maguire noted that an increasing number of respondents have indicated concern on Singapore’s economy in both the medium and long term.

"Already, recent trade performance has underscored the vulnerability of Singapore to sluggish global trade. Domestically, a rise in rates will exacerbate the persistent softness in property prices which will have a knock-on ‘wealth effect’ on households. All of this suggests confidence is more likely to soften, then strengthen, in the coming months," Maguire added.