Consumer confidence in Singapore remained stable throughout the first half of the year, according to the global consumer confidence findings for Q2 from Nielsen — a global provider of information and measurement.
With an index score of 95, the consumer confidence level in the republic has not changed much since Q2 last year (94) and is on a par with the global benchmark (94).
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted between 13 May to 31 May 2013 and measured consumer confidence, major concerns and spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism respectively.
The survey polled 502 respondents in Singapore. Globally, more than 29,000 online respondents in 58 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America took part in it.
Scoring four points below the global average of 54 percent, Singaporeans were found to be less optimistic about their personal finances than most other Southeast Asian countries. Only one in two Singaporeans had a positive financial outlook.
(Click chart to enlarge)
Luca Griseri, head of financial services at Neilson Singapore and Malaysia, said that this result tied in with the moderate GDP growth that the republic experienced in Q1.
In line with Singaporeans' negative financial outlook, the survey revealed that Singaporeans were planning for future financial security.
Sixty percent of Singaporeans ranked saving as their first priority when asked what they did with their spare cash. With that, Singapore has the highest proportions of savers within the Southeast Asian region and beat the global average of 47 percent.
Around a quarter (24 percent) of Singaporeans said they invested their spare cash in shares and mutual funds, compared to just 19 percent globally. One in five Singaporeans allocated spare funds into building their retirement fund, almost doubling the global average of 11 percent.
Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q2 2013. (Click chart to enlarge)
"The number of consumers in Singapore bolstering their savings accounts and investing their money is a further indication that consumers are planning for the future and looking to protect themselves against future fluctuations in the global economy and other external factors," said Griseri.
Sign up for CIO Asia eNewsletters.