<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Consumer confidence plunges <!--10 min-->
</TR><!-- headline one : end --><TR>In Singapore, Nielsen index is down for the first time - by 12 points </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Michelle Tay
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<!-- START OF : div id="storytext"-->CONSUMER confidence around the world has sunk to a three-year low after months of nagging worries over rising living costs and unemployment, a new survey has found.
The Nielsen Global Consumer Confidence Index, which measures the confidence, concerns and spending habits of consumers in 51 markets, found that more than half of respondents think their country is currently in recession. A total of 28,250 consumers were surveyed online in April.
The market research company's Index has dropped six points in the last six months to 88 - marking the largest single drop since the half-yearly Index was launched in 2005.
Consumer confidence fell in 39 countries, said Nielsen. The United States suffered the biggest fall, dropping 17 points.
In Singapore, the consumer confidence level also registered its first drop after rising in every survey since its inception in 2005. It slid 12 points down the confidence pole, from 114 to 102.
'This is by far the lowest recorded level here,' said Ms Vicky Santos, executive director of The Nielsen Company in Singapore.
She said that 'it would be unrealistic to expect Singaporeans' confidence to be sustained at previous levels' given the rising cost of basic necessities.
Ms Santos added that the last six months have been 'the most turbulent period for the global economy in several decades' as consumers worldwide struggle with global issues affecting their daily lives.
But Singaporeans buck the global trend when it comes to recession fears.
Although 56 per cent of global respondents think their country is currently in recession, 80 per cent of Singaporeans do not think Singapore is in one.
However, 47 per cent of Singaporeans believe a global recession will hit in the next 12 months, well above the overall average of 28 per cent.
Singaporeans are most worried about unemployment and inflation. According to Nielsen's study, nearly 75 per cent of Singapore respondents feared for their jobs, while 69 per cent bemoaned rising costs.
These results mirror the steadily falling spending habits of Singaporeans in the last six months.
Singapore's retail sales declined for the first time in seven months in February this year, as news of record-level inflation sapped consumer confidence and spending.
They grew slowly after that but fell again in June, said the Statistics Department last Friday, as vehicle sales slumped and consumers bought fewer luxury goods, mobile phones and computers.
At least people were out looking for a bargain. Singaporeans spent 25 per cent more at this year's Great Singapore Sale compared to last year, said MasterCard Worldwide earlier this month.
But this is not 'the whole picture', said Ms Lau Chuen Wei, executive director of the Singapore Retailers' Association.
She told The Straits Times yesterday: 'We think the real growth will be flat. In the best case scenario, it will be a single-digit increase, probably below 5 per cent.'
Earlier this month, the Government revised its growth forecast from 4 to 6 per cent to 4 to 5 per cent. Labour chief Lim Swee Say also said he expects retrenchment this year to be higher than last year's.
In the light of this, Ms Lau said that she expects the same low rate of growth in sales during the Christmas shopping season, but it is hard to tell if the gloom will persist over the next six months.
Vehicle sales in June declined 8 per cent from the same month last year, while purchases of watches and jewellery declined 21.8 per cent.
Still, Mr Tay Liam Wee, group managing director of watch retailer Sincere Watch, said watch sales 'can still expect some level of growth'.
'I'm generally not worried about Asia, but ask me again in six months' time.'
[email protected] Singapore buyers snap up IT items, Money
</TR><!-- headline one : end --><TR>In Singapore, Nielsen index is down for the first time - by 12 points </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Michelle Tay
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
<!-- START OF : div id="storytext"-->CONSUMER confidence around the world has sunk to a three-year low after months of nagging worries over rising living costs and unemployment, a new survey has found.
The Nielsen Global Consumer Confidence Index, which measures the confidence, concerns and spending habits of consumers in 51 markets, found that more than half of respondents think their country is currently in recession. A total of 28,250 consumers were surveyed online in April.
The market research company's Index has dropped six points in the last six months to 88 - marking the largest single drop since the half-yearly Index was launched in 2005.
Consumer confidence fell in 39 countries, said Nielsen. The United States suffered the biggest fall, dropping 17 points.
In Singapore, the consumer confidence level also registered its first drop after rising in every survey since its inception in 2005. It slid 12 points down the confidence pole, from 114 to 102.
'This is by far the lowest recorded level here,' said Ms Vicky Santos, executive director of The Nielsen Company in Singapore.
She said that 'it would be unrealistic to expect Singaporeans' confidence to be sustained at previous levels' given the rising cost of basic necessities.
Ms Santos added that the last six months have been 'the most turbulent period for the global economy in several decades' as consumers worldwide struggle with global issues affecting their daily lives.
But Singaporeans buck the global trend when it comes to recession fears.
Although 56 per cent of global respondents think their country is currently in recession, 80 per cent of Singaporeans do not think Singapore is in one.
However, 47 per cent of Singaporeans believe a global recession will hit in the next 12 months, well above the overall average of 28 per cent.
Singaporeans are most worried about unemployment and inflation. According to Nielsen's study, nearly 75 per cent of Singapore respondents feared for their jobs, while 69 per cent bemoaned rising costs.
These results mirror the steadily falling spending habits of Singaporeans in the last six months.
Singapore's retail sales declined for the first time in seven months in February this year, as news of record-level inflation sapped consumer confidence and spending.
They grew slowly after that but fell again in June, said the Statistics Department last Friday, as vehicle sales slumped and consumers bought fewer luxury goods, mobile phones and computers.
At least people were out looking for a bargain. Singaporeans spent 25 per cent more at this year's Great Singapore Sale compared to last year, said MasterCard Worldwide earlier this month.
But this is not 'the whole picture', said Ms Lau Chuen Wei, executive director of the Singapore Retailers' Association.
She told The Straits Times yesterday: 'We think the real growth will be flat. In the best case scenario, it will be a single-digit increase, probably below 5 per cent.'
Earlier this month, the Government revised its growth forecast from 4 to 6 per cent to 4 to 5 per cent. Labour chief Lim Swee Say also said he expects retrenchment this year to be higher than last year's.
In the light of this, Ms Lau said that she expects the same low rate of growth in sales during the Christmas shopping season, but it is hard to tell if the gloom will persist over the next six months.
Vehicle sales in June declined 8 per cent from the same month last year, while purchases of watches and jewellery declined 21.8 per cent.
Still, Mr Tay Liam Wee, group managing director of watch retailer Sincere Watch, said watch sales 'can still expect some level of growth'.
'I'm generally not worried about Asia, but ask me again in six months' time.'
[email protected] Singapore buyers snap up IT items, Money
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