Daily Research News Online no. 5066 - World Consumers More Confident

World Consumers More Confident

January 19 2006

Consumers' confidence in their local economies, job prospects and personal finances is on the rise across the world, according to the latest twice-yearly ACNielsen Consumer Confidence Index. Overall, confidence is highest in India and New Zealand, and lowest in Portugal.

The Index, based on a survey of consumers in 42 countries, grew from 92 points in May 2005 to 98 points in November, with two thirds of countries experiencing an increase in confidence. 59% of consumers feel positive about the future of their personal finances, and more people are now choosing to put their spare money into savings - 40% in November vs 36% in May.

Indian consumers are the most optimistic (132 points), followed by those in New Zealand (123), while the Portuguese are the most pessimistic. The Portugese index fell by 6 points to 60 between May and November.

Globally, consumers continue to rank their major concerns as the economy, job security and health. The economy is the biggest concern for most Asian countries, as well as the US, while job security is the top issue for Latin Americans. Health is the biggest or second biggest concern in Europe and North America.

Europe
The European index as a whole remains three points below the global average, but the figures rose in half of the European countries surveyed. The Norwegians, Danes and Irish are Europe's most optimistic consumers while those living in Germany, France and Portugal show least confidence in the economy. Over the last six months, perceptions of job prospects have improved in Belgium, Netherlands, Sweden, Finland and Spain.

When asked what they do with any money left after covering essential living expenses, just 34% of Europeans are saving money (vs 40% globally), while 38% mentioned spending on entertainment, clothes and holidays. Nearly a quarter of Portugese consumers say they have no money left after essential expenses.

North America
Things are looking up in North America, too: 68% of consumers there look forward to good and excellent job prospects over the next 12 months, compared with 54% in May. Similarly, more North Americans think now is a good time to make purchases. Meanwhile, a quarter of US residents say they have no money left after essential living expenses - though this figure is lower than six months previously.

Latin America
Consumer confidence index has increased in all four Latin American countries surveyed (Mexico, Argentina, Brazil and Chile), but remains below the global average in Brazil. Latin Americans are generally positive on employment and financial prospects, with 50 to 70% of respondents expecting to see improvements in the months ahead.

The proportion of people in Brazil saying they have no money left after essential living expenses fell from 23% in May to 7%.

Asia Pacific
The Asia Pacific index increased in nine out of 13 countries. In India, the number of respondents who think job prospects will be excellent doubled from May to November 2005, to 34%.

Even the Japanese and South Koreans, with the lowest confidence indices globally, have become more optimistic. Less than a quarter of respondents in these countries are positive about the future state of their personal finances (compared with 59% globally), but more agree that now is a good time to buy things than they did six months ago.

Asians are the world's biggest savers, with 52% (vs 40% globally) choosing to save spare cash.

The online survey was conducted in November 2005, and polled over 23,500 regular Internet users in 42 markets in Europe, North and South America, Emerging Markets and Asia Pacific. The above is a snapshot of the picture from around the world: full updates for individual countries and areas will be added in the next few days to our new Consumer Confidence section www.mrweb.com/drno/conf/ , launched this week.

ACNielsen is online at www.acnielsen.com