Consumer confidence shrinks in second quarter
Nielsen survey shows job security is the main concern in Pakistan
PHOTO:EXPRESS
KARACHI:
Consumer confidence in Pakistan decreased four points from the fourth quarter of 2016, but remained above the optimism baseline at a score of 102 for the second quarter of 2017, market research firm Nielsen Pakistan reported in its latest Consumer Confidence Survey.
Titled ‘Nielsen Global Survey of Consumer Confidence and Spending Intentions’, the survey indicated that the outlook for jobs declined from 51% in the fourth quarter of 2016 to 47%, while favourable perceptions about personal finances declined one percentage point to 64% in the second quarter of 2017.
Nielsen survey: Consumer confidence highest since 2008
Respondents who were confident about immediate spending intentions increased two percentage points from the fourth quarter of 2016 to 46%.
Job security remains the main concern at 32%, the survey found with the respondents who cited parents’ welfare and happiness as a leading concern increasing four percentage points to 26%.
In addition to these, work/life balance (22%) and children’s education/welfare (19%) are also on top of the list of their concerns.
“The recent flurry on the political horizon which led to uncertainties has taken its toll on consumer confidence in the country,” Nielsen Pakistan Managing Director Quratulain Ibrahim said on Tuesday.
“We are also witnessing a dip in the Pakistan Stock Exchange as a result of this (instability). The slowdown of FMCG retail performance based on our retail audit data in the second quarter further supports the state of consumer sentiment.”
She added some consumers were still cautious as many continued to put their extra cash into savings and investments. However, the outlook is not entirely bleak as there is a segment of consumers who indicated that they intend to spend more on new clothing and other discretionary expenses.
Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to ascertain the perception about local job prospects, personal finance, immediate spending intentions and related economic issues of real consumers around the world.
Nielsen Global Survey: Consumer confidence steady in Apr-Jun
Consumer confidence levels above and below the baseline of 100 indicate the degree of optimism and pessimism, respectively.
Regional and global highlights
Africa/Middle East saw the greatest change globally, with the region’s Consumer Confidence Index rising five points to a score of 88. Regionally, all confidence indicators improved in the second quarter of 2017, the report stated.
In the Africa/Middle East region, countries that posted scores at or above the optimism baseline include the United Arab Emirates (110) and Pakistan (102).
The survey revealed that global consumer confidence increased three points from the fourth quarter of 2016 to a score of 104.
The second-quarter confidence scores increased from the fourth quarter of 2016 in 41 out of the 63 markets measured in the online survey, which allows ‘tremendous scale and global outreach’.
However, it covers tastes and preferences of existing internet users only and not entire populations, thus limiting its reach especially in developing countries with relatively lower internet penetration.
The survey highlighted North America as having the highest consumer confidence globally with an index of 117.
Published in The Express Tribune, September 6th, 2017.
Consumer confidence in Pakistan decreased four points from the fourth quarter of 2016, but remained above the optimism baseline at a score of 102 for the second quarter of 2017, market research firm Nielsen Pakistan reported in its latest Consumer Confidence Survey.
Titled ‘Nielsen Global Survey of Consumer Confidence and Spending Intentions’, the survey indicated that the outlook for jobs declined from 51% in the fourth quarter of 2016 to 47%, while favourable perceptions about personal finances declined one percentage point to 64% in the second quarter of 2017.
Nielsen survey: Consumer confidence highest since 2008
Respondents who were confident about immediate spending intentions increased two percentage points from the fourth quarter of 2016 to 46%.
Job security remains the main concern at 32%, the survey found with the respondents who cited parents’ welfare and happiness as a leading concern increasing four percentage points to 26%.
In addition to these, work/life balance (22%) and children’s education/welfare (19%) are also on top of the list of their concerns.
“The recent flurry on the political horizon which led to uncertainties has taken its toll on consumer confidence in the country,” Nielsen Pakistan Managing Director Quratulain Ibrahim said on Tuesday.
“We are also witnessing a dip in the Pakistan Stock Exchange as a result of this (instability). The slowdown of FMCG retail performance based on our retail audit data in the second quarter further supports the state of consumer sentiment.”
She added some consumers were still cautious as many continued to put their extra cash into savings and investments. However, the outlook is not entirely bleak as there is a segment of consumers who indicated that they intend to spend more on new clothing and other discretionary expenses.
Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to ascertain the perception about local job prospects, personal finance, immediate spending intentions and related economic issues of real consumers around the world.
Nielsen Global Survey: Consumer confidence steady in Apr-Jun
Consumer confidence levels above and below the baseline of 100 indicate the degree of optimism and pessimism, respectively.
Regional and global highlights
Africa/Middle East saw the greatest change globally, with the region’s Consumer Confidence Index rising five points to a score of 88. Regionally, all confidence indicators improved in the second quarter of 2017, the report stated.
In the Africa/Middle East region, countries that posted scores at or above the optimism baseline include the United Arab Emirates (110) and Pakistan (102).
The survey revealed that global consumer confidence increased three points from the fourth quarter of 2016 to a score of 104.
The second-quarter confidence scores increased from the fourth quarter of 2016 in 41 out of the 63 markets measured in the online survey, which allows ‘tremendous scale and global outreach’.
However, it covers tastes and preferences of existing internet users only and not entire populations, thus limiting its reach especially in developing countries with relatively lower internet penetration.
The survey highlighted North America as having the highest consumer confidence globally with an index of 117.
Published in The Express Tribune, September 6th, 2017.