Global Consumer Confidence on the Rise

Steady increase in optimism exceeds pre-recession levels.

November 04, 2014

NEW YORK – Continuing a positive trend, global consumer confidence edged up one index point in the third quarter to a score of 98 — an increase of one point from the previous quarter and two points from the start of the year, according to the latest report from Nielsen. The index, which has been on a slow and steady rise for two-and-a-half years, has now exceeded a pre-recession level of 94 for three consecutive quarters.

In the latest online survey, consumer confidence increased in 65% of the markets measured by Nielsen, with a four-point increase in the U.S., to 108. Consumer confidence in the North America region improved most, rising four points to 107 — a score that matches Asia-Pacific’s index for the first time in Nielsen’s Consumer Confidence history (since 2005).

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with Internet access in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. The latest results reflect an outlook of cautious optimism, as every region’s consumer confidence score improved compared to the previous quarter.

Just over half of global respondents (52%) believed the job market would be good or excellent in the next 12 months, a 2% increase from the second quarter. This modest increase follows steady but small upticks reported during the past five years since 2009 when employment sentiment dropped to an average annual low of 31% during that year.

While perceptions of personal finances have become more positive since 2009, consumers’ overall sentiment about personal finances has not improved as significantly as their sentiment about their employment opportunities. Fifty-seven percent of global respondents rated their personal finances as good or excellent for the upcoming year, compared to the average annual low reported in 2009 of 46% — an 11% increase. By contrast, the sentiment for job prospects increased 21% points over the same time period. North American respondents showed the most dramatic increase in job prospect expectations, as perceptions about employment opportunities rose to 55% in the third quarter.

Considering that more than half of global respondents (54%) believed their country was in a recession in the third quarter, it follows that many still maintain cautious-about-spending mindsets.

For detailed information on the global survey, visit www.nielsen.com.

Advertisement
Advertisement
Advertisement