Q4 2011 KOREAN CONSUMER CONFIDENCE DIPPED TO THE LOWEST SINCE 2ND HALF OF 2009

SEOUL--(Korea Newswire)--Korean consumer confidence decreased three index point last quarter to 46, while global confidence increased one index point to 89, according to fourth quarter 2011 global consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy.

In the latest round of the survey, conducted between November 23 and December 9, 2011, overall confidence levels fell in 60 percent of global markets measured with confidence declines in 35 out of 56 markets. Confidence rose in 12 markets and remained flat in nine.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, tracks consumer confidence, major concerns and spending intentions among more than 28,000 Internet consumers in 56 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Regionally, Asia Pacific(99 index) is the most confident region while Europe(71 index) shows the most pessimism.

India(122 index) remained the world’s most optimistic market for the eighth consecutive quarter with a one point consumer confidence index increase, followed by Indonesia and the Philippines at 117. Hungary was the world’s most pessimistic market at 30 index points, followed by Portugal(36 index) and Greece(41 index). European markets accounted for nine of the 10 most depressed markets last quarter.

The U.S. consumer confidence index rose six points from 77 to 83 and China gained four points to 108, making it the sixth most optimistic country globally, up from eighth place in the previous quarter. Confidence in Germany, the world’s fourth largest economy, remained flat at 87 index points with a four point year-on-year increase.

The biggest quarterly confidence gains last quarter came from Romania(+10), the United States and Australia(+6), Venezuela, Philippines and Columbia(+5) while the steepest quarterly declines came from Taiwan(-16), Czech Republic(-12), Greece(-10) and Belgium(-9).

“While Europe’s challenging economic conditions in the second half of 2011 bought renewed vulnerability and fragility to consumers and financial markets globally, some of the most positive news last quarter came from the world’s two largest economies—the U.S. and China—where confidence rebounded to Q1 2011 levels,” said Dr. Venkatesh Bala, Chief Economist at The Cambridge Group, a part of Nielsen. “Buoyant domestic consumption also maintained confidence levels in the large emerging economies of India, Indonesia and Brazil. However, slowing GDP growth within emerging economies and inflationary pressures would suggest some degree of caution for the year ahead.”

Job prospects over the next 12 months: Most Koreans are pessimistic but half of global consumers are positive

Nine out of ten Korean and Japanese online consumers(91%) indicate their job prospects over the next 12 months are bad, which is much higher than the global average(54%). Both Koreans and Japanese are the most pessimistic about local job prospects? in the Asia Pacific region. Only eight percent of Korean respondents are optimistic on their job prospects while 56 percent and 42 percent of Asia Pacific and global consumers are positive.

Global personal finances are improved, but spending is still restrained

More than half(52%) of global respondents described their personal finances for 2012 as excellent/good, up two percent from Q3 2011, but 65 percent indicated it is not a good time to buy, up one percent from the previous quarter. Most of Korean online consumers(84%) said their personal finances over the next 12 months will be not so good/bad, up four percent from in Q3 and almost 9 out of 10 consumers(89%) think it is not a good time to buy things what they want and need over the next 12 months, up one percent from the previous quarter.

‘Job security’ is a top concern for Koreans while ‘the economy’ is chosen for regional and global consumers as a top fear

The top concern for 16 percent of online consumers in Korea is job security followed by the economy(13%), work and life balance(11%) and debt(10%). Consumer concern for the economy increased as a top fear among 18 percent of global respondents and nearly two-thirds(64%) of consumers around the world indicating they believe they are in a recession, up from 62 percent last quarter.

Most Koreans think they are currently in an economic recession, which is much higher than region/globe

Eighty six percent of Korean online consumers said they are currently in an economic recession, up four percent from in Q3 and this is higher than the regional(53%) and global(64%) average. Furthermore, 61 percent of Korean respondents do not think that they will be out of an economic recession in the next 12 months with and increase of nine percent from the previous quarter, compared to the regional(47%) and global(53%) average.

Koreans have saved household expenses by cutting down on take-away meals while regional/global consumers spend less on new clothes

Seventy percent of Korean online consumers have changed their spending to save household expenses, similar to regional(68%) and global consumers(67%). They cut down on take-away meals(66%), switch to cheaper grocery brands(47%) and spend less on new clothes(45%), while regional and global consumers spend less on new clothes(52%, 53%), cut down on out-of-home entertainment(45%, 49%), tried to save on gas and electricity(41%, 47%). Koreans surveyed indicate they will continue to cut down on take-away meals(31%), gas and electricity(29%) and switch to cheaper grocery brands(18%) when the economic conditions do improve.

“It is interesting that Korean consumers have saved on household expenses by cutting down on food and clothing while regional and global consumers spend less on new clothes, out-of-home entertainment, and gas and electricity. This is mainly due to the recent price rise of groceries such as fruits, meats and dairy products. The Nielsen Global Survey also showed that Korean consumers are extremely pessimistic on their personal finances and time to buy things what they want and need. It can be explained that Koreans’ consumer sentiment has been weakened due to an increase in local oil prices, public utility fees and transportation fares plan.” said Eun-Hee Shin, Managing Director of Nielsen Korea.

About the Nielsen Global Survey

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted between November 23 and December 9, 2011 and polled more than 28,000 online consumers in 56 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion. The Nielsen Global Survey was established in 2005.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement,

online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.

Website: https://nielseniq.com

This is a news release distributed by Korea Newswire on behalf of this company.