MANILA – The Philippines has dropped one spot to third place in the latest consumer confidence global index from Nielsen for the July – September period this year.
The country posted a quarter-on-quarter decline of five points to a Consumer Confidence Index score of 117. The year-on-year trend for the Philippines was up two points, however.
Globally, consumer confidence rose slightly to 99 in Q3 2015, up three points compared to Q2 2015.
Despite their optimism, Nielsen found that Filipinos remain frugal. Close to seven in 10 respondents in the Philippines (67%) put their spare cash into savings, while 30% invest in shares of stock or mutual fund.
And if they were to shop, Filipino priorities include spending on new clothes, and holidays/vacations. “Quarter after quarter, consumers are consistent in their desire to build a nest egg for the future,” notes Stuart Jamieson, Nielsen managing director in the Philippines. “After they’ve channeled money in savings or investments, consumers look into spending on holidays, new clothes, home improvements, technology and out of home entertainment.”
While consumer confidence across a number of Southeast Asia markets has taken dips in Q3 2015, the other countries in the region which remained as the world’s top 10 most optimistic.
At fifth place is Thailand which recorded a flat quarter-on-quarter with 111 and down marginally (2 points) compared to the same quarter a year ago. Vietnam ranked 10th globally with a Consumer Confidence Index score of 105, up one point quarter-on-quarter and up three points year-on-year.
On the tail end is Malaysia, which posted the region’s lowest Consumer Confidence Index (78) also posted the region’s steepest decline, down 11 points quarter-on-quarter and 21 points year-on-year. Nielsen blames the downtrend to consumers’ concern around currency devaluation and rising food prices.
“The country’s robust economy continue to keep the consumers’ confidence in the Philippines bullish, says Jamieson. “The growing recessionary sentiments across other Southeast Asia markets failed to dampen the optimism, only reflecting the same level of positive sentiment at 80%”
