Emerging markets drive consumer confidence

Consumer confidence in emerging regions, such as Asia Pacific and the Middle East and Africa, is exceeding that in more mature areas, according to a Nielsen's latest Consumer Confidence Index.

The study, which tracks consumer economic confidence globally has reported a 16 point quarter-on-quarter rise in the Middle East and Africa to 106 overall. Furthermore, a 10 point quarter-on-quarter growth in Asia Pacific placed the region as the most confident with 107 and helped drive a two-point increase from 90 to 92 globally.

This global rise was tempered by 10 point drop in Latin America to 90, and a five point fall in Europe, which ranked as the least confident region with an index score of 73. North America remained steady with a two point increase to 85.

Venkatesh Bala, chief economist at Nielsen’s The Cambridge Group said that despite a slow but positive global recovery the majority of consumers still believe they are in a recession.

Bala cites figures showing that 55% of online consumers believe that they are in a recession and a further 51% believe the recession will continue for at least another year. Only 37% of consumers in Asia-Pacific believe they are in a recession compared to 82% of North Americans.

Rising food prices were placed as the biggest concern while respondents also said that rising food and utility prices would impact their intentions to spend.

Consumers in India were found to be the most optimistic about their country’s economy posting an index score of 131 to put them ahead of Saudi Arabians (118) and Indonesians (116) in second and third respectively.  Australia (110) and the Philippines (110) round out the top five.

Southern and Eastern Europeans dominated the most pessimistic countries with consumers in Portugal posting the lowest index score with 39, followed by Hungary with 41. Greece (45), Romania (46) and Croatia (47) completed the top five most pessimistic countries.

The Nielsen Global Online Consumer Confidence Survey tracks consumer confidence, major concerns and spending intentions across ore than 28,000 Internet consumers in 51 countries.

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