Global consumer confidence optimistic: Nielsen

29 Jul '15

5 min read

The survey found Latin America sliding deeper into a recessionary market. Consumer confidence declined in six of seven Latin American markets with Brazil (81) reporting the steepest drop of seven index points from the first quarter. The decline represents the third consecutive quarter of declines for the region's largest economy, and the score is the lowest Nielsen has ever recorded (the Nielsen Consumer Confidence Index was established in 2005).

In Brazil, sentiment for the three economic indicators hit new lows, as future job prospects declined four percentage points to 23 per cent, personal finances sentiment decreased four percentage points to 56 per cent, and immediate spending intentions declined nine percentage points to 32 per cent. Nearly all Brazilian respondents believe they are in recession, as the sentiment increased five percentage points to 90 per cent from the first quarter.

Peru's index (95) declined four points, followed by declines of three points each in Chile (84) and Venezuela (62). Consumer confidence in Mexico (84) and Colombia (93) declined two and one point, respectively, from the first quarter. Argentina was the only country measured in the region with a confidence boost, rising six points to 81 in the second quarter.

In North America, US consumer confidence decreased six index points in the second quarter to a score of 101, but remained at an above-the-baseline optimistic level. “Confidence in the US remains at elevated levels,” said James Russo, senior vice president, Nielsen Global Consumer Insights. “However, it's an uneven recovery, as more than half of Americans still feel the effects of the recession and nearly 40 per cent are still living paycheque to paycheque.”

Consumer confidence in Canada, however, increased two points to 98, after declining six points in the first quarter. Immediate spending intentions increased four percentage points in the second quarter to 41 per cent, reversing the decline from the first quarter.

Consumer confidence decreased in three of five countries measured in the Middle East/Africa region and held steady in two in the second quarter. At 108, the United Arab Emirates (UAE) had the highest index in the region, but it decreased seven points from the first quarter—the biggest quarterly decline in six years. Confidence declined five points in Egypt to 85 and two points in Saudi Arabia to 105. Confidence levels in Pakistan (102) and South Africa (87) were unchanged from the first quarter.

According to the survey, consumer confidence increased eight index points in Kenya (112) and three points in Nigeria (132) in the second quarter. Conversely, confidence decreased five points in Ghana (94), the second consecutive quarter of declines. The outlook for jobs increased significantly in Nigeria and Kenya, rising 11 and eight percentage points, respectively, from the first quarter. Eighty-five percent of Nigerian respondents and 67 per cent of Kenya respondents believe the state of their personal finances are good/excellent, up two and three percentage points, respectively. Conversely, sentiment for all three indicators declined in Ghana. (SH)

Fibre2Fashion News Desk – India

More Textiles News - Global...