PH consumers still the world’s most bullish
Filipino consumers remain the most optimistic in the world when it comes to confidence in spending for basic necessities as well as pricier luxury purchases, thanks to their belief in the continued growth of the local economy.
This was according to the results of the Nielsen Global Survey of Consumer Confidence and Spending Intentions for the second quarter of 2017 which showed Filipinos as being the most bullish among global consumers, despite a two-point dip in the index from the traditionally high fourth quarter of 2016.
With a confidence index score of 130, the Filipino buyers expressed the most comfort in spending their monthly wages, ahead of world number two, India, which had an index score of 128, which represented an eight-point decline for the one billion-strong consumer economy of the South Asian nation.
“Consumers in the Philippines have always been in the top three in the past number of years and to be the most optimistic globally for the second time is not surprising,” Nielsen Philippines managing director Stuart Jamieson said in a statement, noting that the economy remains to be one of the strongest in Asia at 6.5 percent gross domestic product growth rate in the second quarter.
It was in the same period last year that consumer confidence in the Philippines surged to the global No. 1 position with a 13-point increase to 132 index score. At that time, it was the biggest quarter-on-quarter increase among countries included in the survey.
Globally, consumer confidence showed signs of continued improvement with an index score of 104, up three points from quarter four of 2016. After the Philippines and India, Indonesian consumers were the most confident with a 121 index score, up by a percentage point.
The US slipped by five points to an index score of 118 while confidence level in Vietnam is on the ascent with a five-point percentage gain to 117 index score.
While the three confidence indicators which were measured in the survey remain high, slight decreases are noted. Job optimism dropped two percentage points to 85 percent in the second quarter compared to quarter four and four points versus quarter two last year. Responses from the Philippines also showed a dip to two percentage points in immediate-spending intentions (58 percent) from the fourth quarter of 2016 and a decrease of three points compared to year-ago report. Favorable sentiment about personal finances remains positive at 84, although it was down from 86 percent in the second and fourth quarters of 2016.
When it comes to having cash to spare after paying for the essential living expenses, saving money still tops the list for Filipino consumers at 58 percent, down six points from the level in quarter four of 2016.
Local consumers indicated increased willingness to allocate spare cash to new clothes, up nine points to 33 percent, while holidays or vacations come in next with 30 percent, up three points from the last quarter of 2016. Investment in shares of stock (29 percent, up 1 point) and home improvements (27 percent, down 2 points) also made it to the list.
“Consumers with a positive outlook about their finances, job prospects, and spending intentions tend to have an open mind-set toward indulgences such as clothes and travel,” Jamieson said.
When asked about their major concerns, respondents indicated job security (30 percent) and health (23 percent) as the two major causes for worry while terrorism moved up the list as the third major concern.
“While previously aware of the terrorism on a global level, the Marawi siege brought the threat of terrorism closer to the minds of Filipino consumers,” he said.
Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of real consumers around the world. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
