Consumer confidence nosedives as recession terror agitates Singaporeans

Cyclical headwinds spook locals out of their socks.

It didn’t take too long for Singapore’s recession near-miss fiasco to take its toll on the local consumer. Singaporeans are gripping their pockets tighter, and for a sound reason, due to a gloomier assessment of current and expected financial conditions.

This was manifest in the latest ANZ-Roy Morgan Singapore Consumer Confidence survey for October, as the city-state’s index dropped to 125.5, slipping by 4.6pts since last month.

According to a statement by ANZ Research, along with being increasingly hesitant about personal financial conditions, consumers have also been having second thoughts regarding purchasing big-ticket household items.

“The growth outlook has also dimmed with the persistence of cyclical headwinds likely to weigh on Singapore’s external-oriented sectors. Domestic conditions are not providing a significant offset at this stage; in fact, higher rates might weigh on mortgage repayments,” said Glenn Maguire, ANZ chief economist.

Maguire says the mingling of external and internal headwinds might brew the perfect storm for local consumer confidence, resulting in continuous softening.