Consumer confidence takes a hit in February

Due to the overhang of supply-side restructuring.

Singapore consumer confidence slipped in February as the overhang of supply-side restructuring continued to cast a pall over consumer outlook.

According to ANZ Roy Morgan, the fall in consumer confidence over the month of February was fairly broad based, though the outsized fall in the assessment of personal finances over the next 12 months stands out, and continues to point to reticence as the most likely consumer behaviour going forward.

“This continues to suggest to us that the overhang of supply-side restructuring is anchoring consumer confidence in a sombre state and it is difficult to turn optimistic on the outlook for consumer spending in Singapore till a larger number of households express confidence on either their own or Singapore’s outlook,” said ANZ Chief Economist South Asia, ASEAN & Pacific, Glenn Maguire

Results showed that less than a third of households surveyed believe that their personal financial situation is better now than it was a year ago (27%) or that it will improve over the coming year (29%).

Less than half of Singaporeans believe that “good times” will be experienced economically over the next twelve months (44%) or “good times” financially over the next five years (49%).