In the second quarter of 2016, Filipino consumers saw increases in all 3 confidence indicators with job optimism leading the rise, improving by 16 percentage points to 88% in the second quarter.
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Personal finance sentiment and immediate spending intentions increased two percentage points each in the second quarter and the outlook for jobs rose four percentage points.
In the six Africa/Middle East countries measured, confidence scores, which ranged from a high of 109 in the United Arab Emirates (a five-point increase from the first quarter) to a low of 78 in South Africa (a three-point increase) have been relatively consistent in each country over the past three or four quarters.
Only China and Indonesia showed marginal increases in consumer confidence in the second quarter, rising one and two points, respectively. Despite the uncertainty and starkly contrasting rhetoric around key economic issues, Americans remained optimistic in the second quarter with a with a three-point confidence increase to 113.
He added that there was a tilt towards savings versus discretionary spending among Indian consumers, leading to a softening in volume growth of consumer goods in the second quarter vis-a-vis the previous quarter, and muted auto sales. But market dynamics have not changed significantly, and consumers were cautiously optimistic about spending intentions. But in Japan, there was a noticeable drag, dropping four points to 69, making it the fourth consecutive quarter of declining scores, amid weak consumption and wage growth. Brazil’s score was flat at 74, while Peru’s score increased 11 points to 102.
After eight quarters at the top, India surrendered the No. 1 spot in Nielsen’s global consumer confidence index to the Philippines in the June quarter, as costlier fuel, rising inflation and monsoon concerns depressed sentiment.
In Europe, Germany’s confidence decreased one point to 96.
In the Middle East/Africa, confidence was stable at 89, a one-point increase from the first quarter.
“A year after the implementation of the GST, consumers have recovered spending in most essential food and non-food categories”.
The report also reveals that consumers in Southeast Asia are still among the most confident across the globe. “This requires even faster action from manufacturers and retailers to address the concerns, before the Vietnamese consumers allow these concerns to determine their decisions”, Nguyen Huong Quynh, managing director of Nielsen Viet Nam, said.
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Hall said almost half also felt the same about their state of personal finances in the coming year (48% versus 40%) despite sluggish economic environment.
