SINGAPORE: According to the Consumer Confidence
Index of global marketing research firm Nielsen, consumers are more
optimistic about personal finances and job prospects - and are out
shopping and enjoying themselves.
Globally, Singapore ranks 15th on consumer
confidence, behind Malaysia in ninth place and Indonesia in second
spot. India is in the top spot.
The mood to spend appeared to be reflected in the
Nielsen survey, which found that Singaporeans feel upbeat about
their finances.
Consumers whom Channel NewsAsia spoke to did not seem to be hit
hard by inflation and did not intend to cut back on spending.
Consumer confidence rebounded to its highest level in over 12
months.
For next 12 months, more than half of those polled see their
personal finances as good, even excellent.
The Consumer Confidence Index for Singapore rose 4 points to 98, up
from 94 in Q2.
There is also an upswing in the number who are are planning to
invest in stocks and shares, or say it is a good time to buy what
they want or need.
"Property prices continue to rise, be it residential or
non-residential. Retail sales have also gone up in the last
quarter," explained Ms Joan Koh, the managing director of Nielsen
in Singapore and Malaysia.
"And perhaps there have been less of negative news coming from
Europe which could actually make consumers (feel) more
settled."
The poll was conducted in August and September.
A seasonal bias may be possible, as people gear up for the year-end
splurge, especially for holidays.
Inflation remains high and is likely to persist into next
year.
But economists say the tight labour market is helping to keep
salaries up and prices affordable for now.
"With such a low unemployment rate, companies are trying to
commensurately keep their staff. So if prices go up, salaries - if
they go up commensurately, people feel they can still afford," said
Ms Annie Koh, dean of executive education at Singapore Management
University.
"My bigger concerns might be if inflation costs keep going up, then
wage costs catch up with it. So people may have to make a decision
on which part of their money earned will go to where. Their
sentiments to spend would be to move to cheaper options. That's how
people manage inflation domestically."
- CNA/ck