Consumer confidence drops to two-year low amid economy, job concerns: Nielsen

SINGAPORE — Consumer confidence among Singaporeans dropped to a two-year low in the third quarter, as concerns over the economy and job security weighed on residents' minds, a survey by global data company Nielsen has found.

This finding comes as ongoing trade tensions between the United States and China have placed a drag on Singapore’s export and economic numbers, although employment data has remained quite healthy. 

Aside from the economy and job security, Nielsen said in its report on Thursday (Nov 21) that the other three issues that Singaporeans were most worried about in the third quarter were their health, work-life balance and increasing food prices.

Here are the key findings from the survey, which polled 500 people: 

1. Growing concerns about the economic outlook

• 37 per cent of respondents were concerned about the economy, up from 32 per cent in the second quarter.

• 32 per cent were concerned about job security, the same proportion as the previous quarter.

• An almost equal proportion of respondents — 34 per cent — said that they were optimistic about job prospects, a sharp decline from 42 per cent in the second quarter.

• More than half the respondents (56 per cent) believed that Singapore was in a recession, up from 42 per cent in the previous quarter. The latest data showed that the Singapore economy grew 0.1 per cent in the third quarter, narrowly avoiding a technical recession.

2. Less willingness to spend 

• 37 per cent were willing to spend on things they want or need, slightly down from 38 per cent in the second quarter.

• 45 per cent would still spend on travel for holidays, a dip from 46 per cent in the second quarter.

• Fewer were willing to spend on new tech gadgets — 16 per cent in the third quarter said that they would, compared with 17 per cent in the second quarter.

• Likewise, 19 per cent would spend on new clothes, versus 22 per cent in the previous quarter.

3. Savings continue to be a top priority

• Given the uncertain economic environment, 62 per cent said that they would put their money into savings.

• 33 per cent would invest in retirement funds, more than the 29 per cent from the previous quarter. 

• 28 per cent would invest in shares or mutual funds, slightly up from 27 per cent in the second quarter.