Filipino consumer confidence remains high

Filipino consumer confidence remains one of the most optimistic globally, ranking in the top five along with two other Southeast Asia markets, according to the latest consumer confidence index of Nielsen.

The Nielsen global survey of consumer confidence revealed that with 115 points, the Philippines is consistently the third most confident globally since the last quarter of 2013.

After India, Indonesia is home to the second most confident globally with the country’s consumer confidence at 125 in the third quarter of 2014.

Thailand’s consumer confidence in- dex score surged to 113 to land at fourth place. Globally, consumer confidence remains steady at 98 points.

Although Filipino consumers continue to list job security as a key worry over the next six months, the concern has gone down from 36% in the first two quarters of the year to 34% in third quarter of 2014.

Concern on health shows a steady rise from 19% in the first quarter of 2014 and 25% in the second quarter to 27% in the third quarter.

Health shares the second cause of concern with work-life balance (27%), which has been perennial major concern of Filipino respondents.

Filipino consumers have also expressed concern about parent’s welfare and happiness (16%), and increasing utility bills (16%).

“While consumers are just starting to enjoy the perks of their personal economic growth, a level of caution remain in their view as concerns about job security, health, and the welfare of family members are always in their minds,” says Stuart Jamieson, Nielsen’s Managing Director in the Philippines.

Close to seven in 10 Filipino and Thai consumers (67%) along with their Southeast Asian neighbors remain focused on putting aside savings for the future with Vietnamese consumers (77%) and Indonesian consumers (74%) stashing their spare cash into savings after covering essential living expenses.

Consumers in other Southeast Asia markets are also diligently saving including those in Singapore (66%) and Malaysia (63%).

While Filipino consumers channel spare cash into savings and invest in stocks (25%), they are also eager to spend on new clothes ( 37%), home improvements ( 29%), and holidays (28%).

“As consumers move into the middle class, there is an aspiration to build nest eggs therefore increasing the demand for financial services. At the same time, they also reveal a growing desire to improve the immediate environment, which is the home, and indulge in experiential offerings such as vacations,” says Jamieson.