Singapore consumers less confident in Q4
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Singapore consumers less confident in Q4: Survey
SINGAPORE: Consumer confidence in the Republic turned pessimistic in the fourth quarter of 2015, according to the results from the Nielsen Global Survey of Consumer Confidence and Spending released on Tuesday (Feb 2). Singaporeans also remained among the top savers and investors in the world, the survey found.
In a media release, global information company Nielsen said that the Singapore Consumer Confidence Index for the fourth quarter has dropped to 94, lower than the global average of 97. According to Nielsen, consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.
For the third quarter of 2015, Singapore scored 101. That placed Singapore as the 12th-most confident in the world, compared to 22nd in the fourth quarter. Globally, India's consumers were the most confident in the fourth quarter, the same ranking it held in the previous quarter.
The Nielsen Consumer Confidence Index measures perceptions of local job prospects, personal finances and immediate spending intentions, among more than 30,000 respondents with Internet access in 61 countries, it said. A total of 500 respondents were from Singapore.
"As tepid global demand continued to influence a weaker manufacturing sector in Q4 2015 and an expected modest economic growth in 2015, Singaporeans have adopted a cautionary approach in their spending," said Ms Joan Koh, Managing Director, Singapore and Malaysia, Nielsen. "Singaporeans have also demonstrated a keen prudence for financial security and protection as savings and investments continued to be a priority over the last few quarters."
According to the survey, 40 per cent of those surveyed in Singapore felt that the country was in recession, compared to 30 per cent in the previous quarter. Of those surveyed, job security (30 per cent) and the economy (30 per cent) were the top concerns, followed by work/life balance at 20 per cent.
In light of these concerns, 62 per cent of consumers said they have cut down on shopping for new clothes, and 50 per cent said they have reduced holidays or short breaks.
Even if the economic situation improves, 36 per cent of those surveyed said they will continue spending less on new clothes, while 29 per cent said they will try to save on gas and electricity and 27 per cent said they will cut down on out-of-home entertainment.
SINGAPOREANS AMONG TOP SAVERS, INVESTORS IN THE WORLD
According to the survey, Singaporeans are joint-sixth in putting their spare cash into savings, sixth for allocating spare cash to invest into shares or mutual funds, and second in the world for placing spare cash into retirement funds.
A total of 64 per cent of Singaporeans will put their money into savings, while 30 per cent have invested in shares and mutual funds. Additionally, 25 per cent will top up their retirement funds to ensure a comfortable retirement.
"Our findings continue to reveal that Singaporeans have displayed a strong desire to ensure financial security through savings and investments regardless of a rainy day," said Ms Koh. "In addition, Singapore has an aging population and it is a wise choice to plan early for the retirement nest egg."
- CNA/av
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JOB SECURITY THE TOP CONCERN
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