MANILA – Filipino consumer confidence has soared to its highest level on record, as it becomes the most optimistic market in Southeast Asia and second global in Nielsen’s Consumer Confidence Index for the second quarter.
While confidence levels in Southeast Asia remain relatively high, the Philippines was the only market where consumer sentiment increased quarter-on-quarter, gaining seven points to rise to a score of 122. In comparison, the global average is 96.
Stuart Jamieson, managing director, of Nielsen Philippines, owed the positivity to “ an upsurge of revenues from the strong business process outsourcing industry, an upswing in the construction sector, and strong consumption spending levels.
He noted that fast-moving consumer goods sales are up 9.8% in the January – May 2015 compared to last year, with growth across all retail channels.
Filipinos are also upbeat with local job prospects (75% or up two percentage points from the previous quarter) and their personal finances (81% or up 4 percentage points from Q1) in the next 12 months, the only market in Southeast Asia to show improvement in confidence levels.
Regardless of their optimism, Filipino consumers along with their Southeast Asian counterparts remain frugal. Vietnam leads this global poll of the biggest savers (73%), followerd by consumers from the Philippines (72%) and Indonesia (69%) rank second and third. On the leader’s tails are Singapore and Thailand (66%), both tied in fifth place, and Malaysia in the sixth spot globally.
How do they plan to spend their spare cash? After covering essential living expenses, three in 10 Filipinos (34%) plan to spend on holidays (up 7 points from Q1). Around 29% (+2 from Q1) will use spare cash on home improvements and 13% (+1) on out-of-home entertainment.
