Consumer confidence falls to lowest in 2 years

Confidence fell to 89 points in Q3 amidst recession concerns and rising food prices.

Singapore’s consumer confidence has dipped to its lowest in 2 years at 89 points, on the back of concerns related to the economy, job security, and their personal lives, according to a study by Nielsen.

Despite half of the Singaporean population (51%) holding a positive view about the state of their personal finances in the next 12 months, consumer confidence for the third quarter of 2019 does not reflect that sentiment.

The survey found that almost four in ten Singaporeans (37%) are concerned about the economy in Q3, up 5 ppt from 32% from the previous quarter. This is followed by 32% stating job security concerns and 19% expressing concerns on health, both which remained unchanged from Q2. Concerns relating to their work-life balance and increasing food prices closed out the top 5 with 17% and 15% of the respondents expressing such, respectively.

Singaporeans’ views on job prospects in the next 12 months were on a steady decline, as only one in three respondents or 34% are optimistic about it in Q3 compared to 42% in Q2 and 45% in Q1.

More than half of respondents (56%) believe that they are currently in a recession compared to only 42% in Q2 and 36% in Q1.

As a result, 62% of consumers would prefer to put their cash into savings. A third (33%) would rather invest in retirement funds (33%).