Consumer confidence in Singapore has reached its peak in the third quarter of this year, making it the highest in over 12 months.
Nielsen's Consumer Confidence Index report showed more than one-third of Singaporeans (36%) felt that the next 12 months would be a good time to spend.
The study also pointed out a 7% point increase in consumers' outlook on their personal finances, with 57% of Singaporeans viewing the state of their personal finances in the coming 12 months as good or excellent.
Nielsen states that Singapore's Consumer Confidence Index rose four index points to 98 this quarter up from 94 in the second quarter.
Although a majority of Singaporeans said they put their spare cash into savings (64%), the third quarter saw an increase in the number of Singaporeans intending to go for a holiday. The number was five points up to 46%. The number of those interested in investing in stocks and mutual funds also rose by seven points to 32%.
However, consumers in the country are still cautious when it comes to household expenses and are trying to save on utilities, new clothes, out-of-home entertainment, groceries and phone expenses.
"Stocks, mutual funds and higher-return alternatives are looking attractive to investors in Singapore despite uncertainties in the global markets. Singaporeans' unwavering appetite for investments as well as savings continue to signal the financial services industry that the market is welcoming even more wealth management solutions," Joan Koh, managing director, Nielsen Singapore and Malaysia said.
She added the combination of investing and saving indicates a desire to seek ways to preserve and grow their wealth."
Globally, Singapore now ranks 15th in terms of consumer confidence. Consumers in India and Indonesia are the most confident in Asia and in the world.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted 10 August to 7 September 2012. More than 29,000 online consumers in 58 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America were polled and in Singapore, the sample size was 512.