Taiwan's Consumer Confidence Down 4 Points in Q2, 2015: Nielsen's Poll

According to the Nielsen's Consumer Confidence Index Report, Taiwan's consumer confidence dropped four points quarter over quarter to 84 in the second quarter mostly due to the simultaneous falls in local consumers' perception of local job prospects, personal finances and immediate spending intentions.

Of the said three criteria, the perception towards job prospects fell seven percentage points, the steepest quarter-over-quarter contraction. Surprisingly, job prospect has always been perceived as the most upbeat in surveys of the island's economic outlook by various organizations. For instance, the island's unemployment rate is projected by the non-profit Taiwan Institute of Economic Research to drop to sub-3.6 percent by the end of this year. 

The survey shows that Taiwan's consumer confidence index for the second quarter ranks the third from the last in Asia, only leading Japan's 83 and South Korea's 45.

The Nielsen poll shows that 73 percent of the surveyed Taiwanese consumers feel that the island's economy being in  downturn  and 52 percent of the respondents worry the island's economy is not likely to emerge from the recession within a year.

The report indicates that the island's consumer spending plans have been undermined by the cuts to Taiwan's gross domestic product (GDP) growth projection for the second quarter and the slowdown of the island's exports since February this year.

The poll shows that after deducting essential spending local consumers are willing to spend only 29 percent of the remaining disposable income on family entertainment, down from 34 percent in the first quarter.

Of the polled Taiwanese consumers, 49 percent said they had spent less on out-of-home family entertainment in the second quarter than in the previous quarter, 45 percent said they had reduced spending on new clothing, and 44 percent said they had cut spending on holiday travel.

The Nielsen poll shows that in the Asia-Pacific region, consumer confidence improved in only four countries in the second quarter, but declined in nine others. The Philippines showed the biggest quarterly confidence increase of seven  points, rising to a score of 122—the country's highest level on record. Confidence also increased one point each in India (131), China (107) and Japan (83) from the first quarter.

Globally, consumer confidence stayed relatively steady for more than a year in the second quarter, declining one point in the second quarter to a score of 96.

Confidence rose in Europe to a score of 79, its highest level in five years
North American confidence remained optimistic at 101, but declined five points from the first quarter, Asia-Pacific confidence held steady at 107, the highest level of all regions, according to the poll.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted during May 11-29, 2015, polling more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America.