ACNielsen Asian/Pacific Survey Shows Economic Caution

Almost two thirds of Australians think the world economy is heading for recession. This is the headline finding from a new Asia Pacific online survey on consumer confidence from ACNielsen.

This latest survey polled over 8,000 consumers in eight major Asia Pacific markets including Australia, China, Hong Kong, Japan, Korea, New Zealand, Singapore, and Taiwan. The panel was composed of nearly 80% professional /white collar respondents.

'Australia and New Zealand don't seem to be as pessimistic as their Asian counterparts, however, where over three quarters of people surveyed considered themselves in the grips of a global recession', said Tom Markert, chairman, ACNielsen Pacific. 'The one exception in Asia is China, where only 55% consider themselves in recession. China had a great year in 2001 and enjoyed a sustained period of high growth. Winning the Olympic bid and joining the WTO has also contributed to a more optimistic outlook and these contributing events have softened the impact of the declining world economy.'

Respondents in Japan, having experienced a troubled economy over the last 10 years, were clearly the most pessimistic. Only 22% of them reported being hopeful for recovery by the end of this year. Similar trends appear for consumer purchasing patterns across the region. Over a quarter (28%) of Australians claim to have deferred a major purchasing decision in the past six months and a third (35%) expect to continue to curb their expenditure over the next six months. People in the region as a whole, however, were different, as two fifths (41%) had deferred a major purchase decision in the last six months, whilst a similar proportion (43%) were expecting to do so over the next six months.

Commenting on these gloomy findings, Markert noted 'The recession has impacted a wide range of major spending categories including cars, holidays, property, and the stock market. Interestingly, although the consumer technology market has been most severely impacted over the past twelve months, many surveyed indicated they may not postpone purchases of goods such as personal computers, cameras and mobile for too much longer, which is a hopeful sign that the worst may be over in this sector.'

Not surprisingly, the recession has affected the region's property and stock markets. Over 20% of respondents in Australia, Singapore, Taiwan and Hong Kong have in fact held back from trading in the stock market. At the same time, nearly a third of respondents in Australia and China have put off buying property. Extended holidays have also been significantly affected throughout the region, especially in Singapore and Australia, with 49% of Singaporeans and 40% of Australians cancelling trips.

In this sense, Markert observes, 'General concern over the economic outlook, particularly in Asia, and weak local currencies during the past 12 months have impacted travel and leisure plans. Over the next six months it is likely that the level of travel in the region will continue to be sluggish until security concerns subside and positive signs of an economic recovery in the region become more apparent.'

The ACNielsen Regional Online Omnibus will be a quarterly syndicated online consumer survey on an Asian Pacific attitudes and consumption of media, products and services.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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