MANILA, FEBRUARY 6, 2013 – The Philippine economy is on the up and up, curing the recessionary mindset of the Filipino consumer. Consumer confidence findings from Nielsen revealed that Philippine consumer confidence indexed at 119 in Q4 2012, a one-point increase from Q3 2012. And Across the 58 countries Nielsen measured in Q4 2012, confidence declined in 33 countries, remained flat in six countries, and increased in 19 countries, compared to the prior quarter.
Meanwhile, confidence fell in eight of 14 Asia-Pacific markets in Q4 compared to Q3 2012, with four-point declines in Hong Kong and Taiwan, but the region reported the highest consumer confidence scores overall. India topped the global list with an index of 121, an increase of two points from last quarter, followed by the Philippines with 119 and Indonesia, which declined two points to a score of 117. China increased two index points to a score of 108, while Thailand (115) and Malaysia (103) also scored above the baseline of 100.
The continued positive consumer outlook in the Philippines, said Stuart Jamison, managing director of Nielsen Philippines is due “to the strong performance of the economy in 2012 which was driven by the real estate, construction, manufacturing, services, and trade sectors”.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 29,000 respondents with Internet access in 58 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism. In the latest round of the survey, conducted between November 10 and November 27, 2012, consumer confidence rose in one-third (33 percent) of global markets measured by Nielsen, compared to a 52-percent increase in the previous quarter.
Job prospects and personal finances optimism
Filipino respondents’ optimism for local job prospects is also among the world’s highest, up by four points from Q3 2012 to 76 percent of respondents who claimed that employment opportunities would be good or excellent in the next 12 months. Confidence in personal finances stood at 77 percent, down by one point from Q3 2012. Fifty-one percent of Philippine respondents said it was a good time to buy things they wanted and needed over the next 12 months. This is an increase of five points from the previous quarter’s result and the highest confidence registered for 2012.
Putting spare cash into savings remained a priority among 65 percent of Philippine respondents, but declined two percentage points from Q3. Twenty-one percent of the respondents say they invest in shares of stock/mutual funds, an increase of two points. Purchase of new technology products increased by one point to 35 percent, while purchase of new clothes increased by two points to 34 percent. Paying off credit cards and debt declined one point to 27 percent. Spending intentions for holidays/vacations increased by one percentage point to 28 percent, while out-of-home entertainment increased five percentage points to 18 percent.
Top concern: Job market security
Half of Philippine respondents (50 percent) said they were in a recession in Q4, an improvement from 56 percent the previous quarter and 59 percent for the same period in 2011.
While the economy is the top concern globally, including Asia Pacific, job security remains the top concern for Philippine respondents. This is followed by work/life balance, health, the economy, parent’s welfare/happiness, and increasing utility bills.
