Singapore's consumer confidence rebounds for the first time in 12 months

It bounced back to 98pts in Q3.

Singapore’s consumer confidence levels are showing signs of strengthening in the third quarter of 2013 following three consecutive quarters of flat performance, according to the latest consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy.

Nielsen’s Consumer Confidence Index showed confidence in Singapore dropped in Q4 last year and has rebounded to 98 points in Q3 2013, returning to the same levels as in Q3 last year.

The Nielsen report revealed a nine percentage point increase in consumers’ outlook on their job prospects, with 61 percent of Singaporeans viewing the state of their job prospects in the coming 12 months as good or excellent.

The results also showed an improvement in consumers’ outlook on their personal finances, with 54 percent of Singaporeans viewing the state of their personal finances in the coming 12 months as good or excellent, up four points from Q2 2013.

“Recent local and global economic forecasts and events have presented us with a mixed picture,” says Luca Griseri, Head of Financial Services, Nielsen Singapore and Malaysia. “On the one hand the global economic outlook remains uncertain, with the on-going rebalancing of the Chinese economy and the impact of the recent US government shutdown. On the other hand, the domestic outlook is much more positive, with a number of better-than-expected indicators having been announced for Singapore.”

“The higher-than-expected GDP growth that Singapore experienced in Q2 has had a positive impact on consumers’ confidence, which has increased this quarter for the first time in 12 months,” added Griseri.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions amongst more than 30,000 respondents with Internet access in 60 countries.

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism. Consumer confidence increased in more than half (57%) of markets measured by Nielsen, compared to less than half (45%) in the previous quarter.

Despite declining four index points, Indonesia (120) reported the highest consumer confidence index worldwide for the third consecutive quarter.

Investment sentiment increased in 57 percent of all markets measured across the globe, compared to Q2. Consumers across Southeast Asia continue to rank among the world’s biggest savers, and channelling excess funds into savings was the number one priority cited by consumers in the region after covering essential living expenses.