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Consumer pessimism rises

Local consumer confidence was the most pessimistic among 13 Asia Pacific countries surveyed by ACNielsen, the market researcher said yesterday.

"About 35 percent of Taiwan consumers polled said the economy will worsen during the next six months, compared to 31 percent of Singaporeans or 32 percent of Japanese," said Chiko Wong (黃季高), director of customized research at ACNielsen Taiwan Ltd.

Around 39 percent of consumers in Taiwan said they expect the economy to continue deteriorate over the next six months. A similar survey was conducted six months ago.

"Consumer confidence in Taiwan hasn't really changed since July." Wong said. "But Taiwanese are somewhat more pessimistic about the future compared to other Asia Pacific countries."

Local consumer spending on vacations dropped 65 percent over the six-month period, while purchases of luxury items plummeted 74 percent.

While consumers chose to defer major acquisitions, they continued to invest in equities.

"People seem to have regained some confidence in the stock market," Wong said.

About 24 percent of local consumers said they will defer making stock investments -- but in July the figure was 43 percent.

"But the reliability of financial managers will be a key factor in future stock investments," Wong said.

About 73 percent of local consumers said they went out less frequently and 50 percent eat out less, the survey said. Fifty-three percent said they skipped the latest movie premier while 63 percent found alternative means of transportation to taking taxis, the survey showed.

Regionally, consumers don't expect to see an economic recovery until 2004, according to the ACNielsen online survey of more than 9,800 people. The survey was conducted between Nov. 20 and Dec. 3.

While trying to gauge the consumer outlook for the next 12 months, only 47 percent of those polled in the Asia Pacific believe that their country's economy would pick up within the next year, while 66 percent said the recovery may be stalled until the first half of 2004, the report said.

India, Singapore and China are the "most optimistic," expecting a recovery within a year, while Indonesia, Japan and Thailand are the "most pessimistic," according to the survey.

"With uncertainties over the future heightened by fears of terrorist attacks, expectations for economic recovery in Asia Pacific will remain conservative," said Titan Wang (王德林), managing director of ACNielsen Taiwan Ltd.
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