Gloomy Consumers in AsiaPac

Lack of job security, a deteriorating global economy, health and the threat of terrorism are all factors keeping consumers in the Asia Pacific region up at night, according to a recent ACNielsen Consumer Confidence Poll conducted in July this year.

The ACNielsen Consumer Confidence Poll is based on an online survey of nearly 8,000 consumers between 13 and 31 July across 13 markets in the region, including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand.

The ACNielsen poll found the biggest concern to be job security, with 26 per cent worried about jobs the most for the next six months, followed by a worsening of the economy (20 per cent), health (12 per cent) and the threat of terrorism (11 per cent).

'Australian confidence in the economy appears to have worsened since we conducted the survey in November last year, with worries about job security probably exacerbated in consumers minds by the recent spate of corporate collapses in Australia' said Tom Markert, Group Chairman, ACNielsen Pacific.

'And we aren't seeing a light at the end of the tunnel as yet. Only 41 per cent of us are confident we will recover from a global recession within the next year, compared to 51 per cent in November 2001. Recent increases in interest rates will have taken their toll on Australian consumer confidence as well', he added.

Australians and their New Zealand counterparts, however, aren't as pessimistic as consumers in Asia Pacific overall, where 99 per cent consider themselves in the grips of a global recession, up from 85 per cent in November 2001.

'Beyond the economy and compared to the rest of the region, the threat of terrorism appears to be weighing heavily on our minds', commented Mr. Markert.

'Behind India - where 11 per cent are concerned about potential terrorist threat - Australia ranked second, with 10 per cent worried about terrorism. For a country more remote than some of their Asian neighbours, this may reflect our 'shrinking world' and is perhaps further affected by the current government's strong support for the US War on Terror', he added.

For New Zealand, crime ranked first as a concern alongside job security. The threat of terror was not such a concern, although war in India was a consideration, with 6 percent concerned, ahead of all other Asia markets outside Australia and Indonesia.

Concerns about the economy continue to impact consumer purchase behaviour in Australia and across the region. 40 per cent of those polled in Australia claimed to have put off the purchase of stocks and shares in the last 6 months, up from 32 per cent in November.

'The most common investments and purchases being put on hold include cars, property, stocks and shares and extended holidays', commented Mr. Markert. '40 per cent of Australians claimed to have deferred a property purchase in the last six months, up from 32 per cent in November, although travel jitters post September 11 appear to have eased in Australia, perhaps as a result of improved security at airports. In the latest survey, 29 per cent of Australians claimed to have deferred an extended holiday in the past six months, a marked improvement on the 40 per cent who had done the same when we surveyed them in November.'

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

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