Index up 13 points in 6 months

Consumer confidence in Thailand rose to 94 points last month, from 81 in April, exceeding the global average, the Nielsen Global Consumer Confidence Index said yesterday.

As massive stimulus plans began to take effect during the second quarter, consumer confidence around the world, including Thailand, slowly began to recover from their lowest points in the last six months.

Thai consumers' confidence increased by 13 points in the April-October period, while globally the index rose nine points to 86.

Nielsen's Global Consumer Confidence Index tracks consumer confidence, major concerns and spending habits among more than 30,500 Internet users in 54 countries and territories. The survey was conducted from September 28 to October 16.

Of the 54 places surveyed, 45 recorded an increase from six months ago. Consumer sentiment is optimistic globally - India, Indonesia and Norway continued to top the global rankings for most confident nations, while the most pessimistic nations were Latvia and Japan.

"A nine-point surge in consumer confidence signifies a welcome return to positive territory. It really demonstrates that in the last six months consumer sentiment across the globe has shifted gears from recession to recovery - the tide has turned," said James Russo, vice president for global consumer insights at Nielsen.

For many consumers in the Asia-Pacific and Latin America, the recession is becoming past tense. Among the Chinese, 87 per cent said their nation was out of recession, while more than 60 per cent of citizens in Hong Kong, Norway and Australia said the same. Half of Brazilians, Indians and Chileans also believe the recession has ended.

Among Thais, 75 per cent said their economy was in recession, down from 84 per cent in April. Among consumers who said they remained in recession, 28 per cent expected their country to be out within 12 months.

Thailand's eight-point increase in the third quarter was driven by strong improvements in local job prospects and personal income across the country. Nearly four in 10 consumers described local job prospects as "good" or "excellent" in the next 12 months, up 12 per cent quarter on quarter.

Nielsen Thailand managing director Aaron Cross said his company saw an extension of this optimism in the third quarter but that consumers here remained hesitant to go out and spend.

Putting money into savings continues to be the strongest desire for 57 per cent of consumers, yet the results indicate there is a willingness to spend on holidays and trips if they have spare cash.

While global consumers continue to voice concerns about the economy and job security, many have started to focus on other issues. Worrying about the economy has decreased over the past six months.

In April, 27 per cent of local consumers named the economy as their main concern, followed closely by job security at 14 per cent.

Today, 21 per cent of Thai consumers say the economy is their prime concern, while 8 per cent are concerned about job security. Most Thai consumers - 84 per cent - say they have changed their spending habits compared with last year.

Thais have reduced spending on new clothes by 65 per cent, followed by gas and electricity 60 per cent, out-of-home entertainment 60 per cent and telephone expenses 49 per cent.