Consumer confidence rises quickly in Asia

Consumer confidence rises quickly in Asia

Agence France-Presse, Singapore

Consumer confidence in the Asia Pacific has rebounded faster than expected from the severe slump in the first half of the year that was chiefly blamed on SARS, a survey released on Wednesday said.

The ACNielsen survey showed more people are optimistic their economies will further improve in the next 12 months and are willing to spend extra money for non-essential items and overseas holidays.

Indians were the most optimistic, with 89 percent of those surveyed believing their economy will continue to strengthen in the coming year, followed by Thailand with 84 percent and Malaysia with 76 percent, according to the survey.

Hong Kong, which was one of the areas to suffer the most from the Severe Acute Respiratory Syndrome (SARS) viral outbreak, was the fifth most optimistic with 67 percent saying they were confident of a sustained rebound.

"The incident of SARS and war on Iraq caused a real setback to consumer confidence a few months ago and led many to think that a rebound in 2003 would be a dream," said Frank Martell, president of ACNielsen in the Asia Pacific and emerging markets.

"However, as our findings show, cities like Singapore, Hong Kong and Taiwan which were hit by SARS, have actually regained their momentum relatively quickly, and the people in India and Thailand also sound particularly upbeat about their future."

A total 7,230 people in 13 Asian markets were covered by the survey, which the marketing information firm carried out in October.

In the survey, personal health overtook the economy as the Asians' main worry, and more people said they were willing to spend extra cash to buy high-tech gadgets such as personal computers, mobile phones, digital cameras and flat screen television, the survey said.

Consumer sentiment emerged strongest in Hong Kong, with 86 percent saying they will spend on non-essential items, such as clothes, entertainment and new gadgets.

People from Singapore, Taiwan and Hong Kong also said they would spend more on international travel, compared with six months ago when most opted for holidays within the country.