Asian consumer confidence on the decline

Asian consumer confidence on the decline

SINGAPORE (AFP): Consumer confidence through most of the Asia
Pacific region is on the decline from the buoyant levels of last
year, according to the results of a lifestyle survey released
Wednesday.

Of the 13 economies surveyed, only rivals China and Taiwan
registered solid growth in the MasterCard International survey
which measured five economic factors: employment, economy,
income, stock market and quality of life.

Indonesia registered the sharpest decline, with the
Philippines, Thailand and New Zealand also down markedly.

Consumers "have come a little bit back to reality," said
Stuart McDonald, MasterCard's senior vice president for corporate
services, after countries polled high last year when markets were
recovering faster than expected from the 1997 economic downturn.

"This year, as the markets start to buckle down and work
towards rebuilding industries and businesses, consumers are
realizing that there are no overnight miracles and the rebuilding
process will be protracted," McDonald said.

Scoring from an index based on the percentage response
figures, the second quarter survey found confidence in China rose
to 76.6 from 75.5 at the end of last year.

Optimism in quality of life scored 90.6, just ahead of
confidence in the economy.

While China may continue to threaten to use force to retake
Taiwan, there were no signs of jitters in the confidence of
Taiwanese consumers with the score rising from 68.1 from a
previous 55.5.

In Japan, confidence was marginally up at 33.4 points, but the
Japanese are extremely pessimistic about quality of life, rating
it zero.

Malaysia continued to rank highest in the bi-annual survey,
although its 89.6 rating was a shift down from its previous score
in the 90s.

In Thailand, whose battered currency triggered the 1997
regional meltdown, the level of confidence was at 52.4 points,
down from 72.1 at the end of last year.

Indonesia posted the sharpest decline, with the confidence
level falling 36 points to 54.5.

Indonesian consumers are still feeling the crunch from the
economic collapse and the government is struggling to pull the
country out of the slump, said Chua Beng Huat, associate
professor of sociology at the National University of Singapore
who analysed the figures.

"The effects of the rupiah is felt constantly on a daily
basis," he said.

Singapore scored 87.4, the second highest in the survey, but
down on its 92.7 at the end of 1999, while Hong Kong rated 74.2,
dragged down by a low score of 40 for regular income.

In Australia, confidence fell to 56 from 66.3 with a score of
72 on regular income, while neighboring New Zealand was down to
43.7 from a previous 65.7.

India and South Korea both scored in the low 60s from previous
scores in the 70s.

The survey of 5,469 consumers had a margin of error of four
percentage points.