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.