Consumer confidence in AsPac down slightly

MANILA, Philippines - Consumers in Asia Pacific’s emerging markets remain optimistic despite a slight decline in overall consumer confidence for the region, according to the MasterCard index of consumer confidence. This decrease comes after the region recorded the highest consumer confidence score in more than 10 years in the previous survey conducted in the first half of 2014.

Respondents were asked to give a six-month outlook on five economic factors including the economy, employment prospects, regular income prospects, and their quality of life. The index is calculated with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.

Based on the survey, the Asia Pacific markets are optimistic overall despite a decrease of 2.9 index points to 65.5 index points in the second half of 2014, from 68.3 index points in the first half of 2014.

Compared to first half of 2014, only the Philippines (up 7.7 index points) and Bangladesh (up 16.9 index points) out of the 16 Asia Pacific markets surveyed recorded a greater than five index point improvement in consumer confidence. ‘Ten out of 16 Asia Pacific markets remained stable with either muted improvements or declines.

“The slight drop in Asia Pacific’s consumer confidence reflects an outlook of cautious optimism. Consumers across the region are holding their breath for signs of sustained economic growth and opportunity. Emerging markets Myanmar, India and Indonesia are the most optimistic because of either positive anticipation for a brighter future or excitement around their respective newly-minted governments. Conversely, the developed markets of Northeast Asia, namely Taiwan, Japan and Hong Kong were much less optimistic in their outlook. In these markets, the wanted signs of long-term growth and opportunity are blocked by Hong Kong’s recent political crisis and Japan’s weakening yen,” said Pierre Burret, head of Delivery, Quality & Resource Management for Europe, Asia Pacific, Middle East & Africa, MasterCard Advisors.

The index is based on a survey conducted between October 2014 and November 2014 on 8,235 respondents aged 18 - 64 in 16 countries across Asia Pacific. This is the 44th survey of Consumer Confidence conducted since 1993.