Optimistic outlook holds steady amongst respondents in Asia-Pacific Region : MasterCard

Eight of the fourteen markets polled reflected positive consumer sentiment looking ahead, with the Asia-Pacific region witnessing an overall increase in its consumer confidence index score from six months ago.

Now in its 18th year, the MasterCard Worldwide Index of Consumer Confidence is the region’s longest running consumer confidence survey. Released twice a year, the Index is based on a survey which measures consumer confidence on prevailing expectations in the market for the next six months based on five economic indicators: economy, employment, stock market, regular income and quality of life.

The Index score is calculated with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.

The latest survey was conducted from 15 March to 12 April 2010 and involved 10,503 consumers across 24 markets.

Vietnam (93.7), Singapore (86.6) and China (83.0) continued to reflect higher consumer confidence compared to other markets in the region. Malaysia (71.7 vs 63.5), the Philippines (84.6 vs 69.9), Singapore (84.3 vs 67.5) and Taiwan (64.3 vs 47.2) showed increased confidence in their regular income outlook as compared to six months ago.

Across the region, the trend of respondents below the age of 30 being more optimistic than their older counterparts has continued, with the index scores of the former group averaging 73.0 points, as compared to 67.4 points for those over the age of 30. This was significant in New Zealand (77.2 for those below 30 vs 61.8 for those above 30), Hong
Kong (83.3 vs 74.4), Singapore (92.0 vs 84.0) and the Philippines (64.4 vs 56.7).

Respondents above the age of 30 in Korea, however, reflected higher optimism levels than their younger counterparts (56.0 for those above 30 vs 47.7 for those below 30).

Dr. Yuwa Hedrick-Wong, economic advisor for Asia-Pacific at MasterCard Worldwide, said: “While consumers in this region were amongst the first to cut back drastically on discretionary spending 18 months ago, they now seem confident and ready to significantly increase their discretionary expenditures and reduce their precautionary savings."

"This stability of consumer confidence and rising consumption in Asia/Pacific therefore bodes well for stronger business investment through the rest of the year, thereby contributing to the momentum of recovery,” she added.