MANILA, MAY 3, 2013 – Pinoys remain one of the most optimistic consumer groups in the world, lugging closely behind Indonesia and India in Nielsen’s Q1 2013 Consumer Confidence Index.
Dipping a single point from 2012, the Philippines registered at 118 and the study reveals that consumer optimism does not necessarily translate to more spending.
“Aside from the slight decrease in consumer index, we are seeing a more conservative attitude towards spending and an increase is willingness to save,” said Stuart Jamieson, managing director, Nielsen Philippines.
When asked if it is a good or bad time to buy things that they want and need over the next 12 months, 6% of Filipino online respondents agree that it is an excellent time as compared to 8% in Q4 2012. Thirty-nine per cent responded that it is good time to spend while 47% of the respondents said that it is not a good time to buy. Six percent of the respondents said that it is a bad time to spend as compared to 5% in Q4 2012.
Filipino respondents also reported that they have made adjustments in spending to save on household expenses with 83% saying that compared to last year they have changed their spending. This is an increase of five percent from Q4 2012.
Filipino survey respondents said that to save on household expenses during the first quarter they have spent less on clothes, tried to save on gas and electricity, delayed upgrading technology, switched to cheaper grocery brands, and made cut downs on out-of-home entertainment.
Expect the respondents to be on budget saving mode because they said that they will continue with these budget saving methods even when economic conditions improve.
Saving spare cash continued to be a priority among 68 percent of respondents, a rise of three percentage points from Q4 last year while spending intentions on new technology products decreased two points to 33 percent.
Despite the slight decrease in consumer confidence index and the noticeable wariness in spending, Filipino consumers feel positive about the state of their personal finances with 16% viewing their personal finances as excellent while 65% of the respondents find their finances in good condition.
The sentiment on local job prospects over the next 12 months is still high with 12% of Filipino consumers perceiving local job prospects as excellent while 64% of Filipino consumers perceive a good prospect for local jobs.
"While sentiments all over the world improved, uncertainties over natural disasters, weak labor markets, increasing prices of petroleum products, and rising costs of goods and services, may have had minimal effect on the continuing positive outlook of the Filipino consumers, these factors left a lasting influence on the consumers, driving them to be more cautious and practical on how they will spend their hard earned money,” observed Jamieson.
Topping the consumer confidence index was Indonesia which registered at 122, a five index point increase from Q4 2012. India follows closely with 120, down an index point from last quarter.
