Consumer confidence hits record low

Singapore – Things don't seem to be looking up for global supply chains yet, with consumer spending hitting new lows in Singapore.

Consumer confidence in Singapore fell 12 index points from 92 to 80 in the past six months, a record low, said a Nielsen Global Consumer Confidence Index. Singapore's all time high stood at 114 points in late 2007.

"Global consumers, and Singaporeans notwithstanding, have been battered and bruised by a constant onslaught of bad news in the last six months," said Paul Richmond, MD of consumer group at The Nielsen Company Malaysia and Singapore. "All over the world, announcements of job cuts and company profit warnings, bankruptcies and foreclosures, lowered GDP expectations, among other negative reports, have combined to hit consumer confidence hard."

The index puts a damper on relatively optimistic views held by analysts of the world coming out of the recession by 2010, as consumer spending has been closely linked to economic recovery.

Economic uncertainty has also bolstered Singaporeans' inclination to save, the survey said. The intention to save is now seen in three out of four consumers in the city state, the highest record so far. After the intention to save, consumers are more most inclined to spend on holidays/vacations at 42%, pay off debts on credit cards and loans at 27% and purchase new clothes at 28%.