Nielsen: Q Hong Kong Consumer Confidence Drops Four Index Points to 85

Transcription

1 News Release FOR IMMEDIATE RELEASE CONTACT: Susanne Tong, Nielsen: Q Hong Kong Consumer Confidence Drops Four Index Points to 85 More than half of Hong Kong respondents believe they are in recession Further decline in discretionary spending across all lifestyle sectors Hong Kong 5 February 2013 Weaker job prospects and a dampened outlook for personal finances in 2013 caused consumer confidence in Hong Kong to fall four index points to 85 in Q4 2012, according to the latest survey of consumer confidence and spending intentions from Nielsen, a leading global provider of information and insights into what consumers watch and buy. The Hong Kong index of 85 falls below the global average of 91. 1

2 Drivers of Consumer Confidence The weakened consumer confidence in Hong Kong in the last quarter was driven by consumers increased pessimism on job prospects (up 1%), state of personal finances (up 2%) and spending intent (up 2%) compared to last quarter. Hong Kong hard hit by global economic volatility Hong Kong s consumer confidence was significantly impacted by global economic volatility. As the financial services centre in Asia, Hong Kong has not escaped from the global economic downturn, said Oliver Rust, managing director of Nielsen Hong Kong. The continual drop of consumer confidence in Hong Kong last quarter can be attributed to to numerous macro-economic factors, including the unresolved Eurozone crisis, the U.S. fiscal cliff concerns, rising inflation and leadership changes in China. The volatile global market last year took a toll on Hong Kong s economy, raising recessionary concerns and significantly impacting consumers confidence. More than half (55%) of the respondents in Hong Kong believe they are in the middle of recession, compared to sixty percent in the last quarter and forty-eight percent a year ago. 2

3 The concerns of consumers While the challenging market outlook is likely to persist into the near future, consumers concerns over the economy and job security continued to be paramount in the last 12 months. The macro economy and job security continued to rank within the top three concerns among Hong Kong consumers since Q4 last year, reflecting the long-standing issues to be resolved, Rust commented. 3

4 The spending and saving pattern of consumers Amid the market uncertainty, saving for rainy days remained the top priority for Hong Kong consumers and consumers exercised spending restraint across all lifestyle categories from new clothes (down 5%) to new technology products (down 9%). Sixty-eight percent of consumers are putting their spare cash into savings and thirty-eight percent opting for investments. Hong Kong consumers are proceeding with extreme caution in spending. There is the lingering concern about the continuously high property prices, the rising commodity prices, the government policy, and the subdued growth in mainland China in 2012, Rust supplemented. Consumers have also cut back household spending compared to a year ago. Sixty-two percent of respondents indicated they have changed spending habits to save on household expenses, up four percent compared with the previous quarter. 4

5 Global / regional view Despite of the declining trends in Hong Kong, the consumer confidence and market sentiment showed signs of improvement on the global level. Global consumer confidence was indexed at 91 in Q4 2012, a one-point decline from Q but an increase of two points from Q Recessionary mindset improved with three-percent decrease from last quarter. The Asia-Pacific region was reported with the highest consumer confidence scores overall. Developing markets continued to be the most optimistic segment of the region. China consumer confidence increased two index points to a score of 108, with better-thanexpected data for manufacturing, exports and investments that lifted consumers optimism on the key drivers of consumers confidence. Other developing markets like India (121 points), the Philippines (119 points), Indonesia (117 points), Thailand (115 points), and Malaysia (103 points) all scored above the baseline of 100 indicate degrees of optimism and pessimism. On the other hand, developed markets like Japan (59 points), South Korea (38 points), Taiwan (66 points), and Singapore (95 points) fell below the baseline, reflecting an increasingly polarization in Asia-Pacific. 5

6 Note: The definition of developed / developing countries is based on IMF classification of a market s economy as advanced or developing. END 6

7 Notes to Editor: About the Nielsen Global Survey of Consumer Confidence and Spending Intentions The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted between November 10 27, 2012, and polled more than 29,000 online consumers in 58 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. The sample has quotas based on age and sex for each country based on their Internet users, is weighted to be representative of Internet consumers, and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60-percent Internet penetration or 10M online population for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in About Nielsen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows, and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA, and Diemen, the Netherlands. For more information, visit Remarks The charts in this press release are based on the Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q