Singapore consumer confidence dips in Q4 2010
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By Chris Howells | Posted: 31 January 2011 1810 hrs
SINGAPORE: Singapore's consumer confidence fell in the fourth quarter of 2010 compared to the third quarter, according to the Nielsen Consumer Confidence Index.
The index came in at 109, compared to 113 in the third quarter, although it rose nine points compared to the fourth quarter of 2009.
This was the first quarter-on-quarter decline since the first quarter of 2009 and the index remains below the 114 recorded in the third quarter of 2007.
At 109 points, Singapore is the seventh most confident country, after India (131), Philippines (120), Norway (119), Indonesia (116), Australia (112), and Switzerland (110).
A reading above 100 indicates a confident consumer sentiment.
The Nielsen Company Singapore managing director Joan Koh said: "Despite a four percentage point dip in the consumer confidence index, an index of 109 is still a positive one as Singapore managed to hold its own and stay minimally unaffected by the uncertainties we have seen in the other parts of the world.
"The fact remains that the economy continues to boom, thanks in large part to government initiatives to manage sustainable growth, and strong regional growth".
But consumers in Singapore are starting to show their concerns about inflation.
Nearly 48 per cent, or one in every two Singapore respondents, perceives that now is not such a good time to buy things; a sentiment in line with global (48 per cent) and regional (49 per cent) consumers, according to Nielsen.
"With rising costs of food, utilities, petrol and transport fuelling speculation that the pace of inflation will pick up as we enter 2011, consumers perceive direct impact to their disposable incomes and intend to hold back on purchases as a result," explained Koh.
Nielsen attributed the positive year-on-year sentiment to good employment prospects and higher salaries and bonuses.
Among Asia Pacific counterparts, Singaporeans are the second most optimistic in terms of job prospects over the next 12 months, with 90 per cent feeling positive about employment.
This came as the Ministry of Manpower (MOM) released on Monday morning preliminary estimates for the fourth quarter, showing that total employment grew by 30,600 in the fourth quarter, up from 20,500 in Q3.
For the whole of 2010, total employment increased by 112,500, exceeding the gains of 37,600 in 2009, according to MOM.
-CNA/wk -
most of the time, we have confidence that the gabrament is trying to rip us off?
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unemployment rate down - economy growth up then why consumer confidence dips?
whos playing buff?
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at least stagflation is over but leaves with high inflation to tackle...knowing that people will try to curb spending.....the red packets from govt will try to resolve the problem of under spending....
the packets has to be more to see certain effects.....but whatever the case....watch out for slow growth in 2011.....and perhaps lots of rain and floods....