Worries begone: Singapore consumer confidence hits 12-month high

Seems like Singaporeans are on a spending spree.

According to the latest Consumer Confidence Index by Nielsen, consumer confidence in Singapore has rebounded in Q3 2012, reaching its highest level in more than 12 months.

Here's more from Nielsen:

Singapore’s Consumer Confidence Index rose four index points in Q3 2012, up from 94 in Q2 2012 to 98 points in the latest quarter. The Nielsen report also revealed a seven percentage point increase in consumers’ outlook on their personal finances, with 57 percent of Singaporeans viewing the state of their personal finances in the coming 12 months as good or excellent.

“Our latest survey results show that Singaporeans are feeling more positive particularly where their personal finances are concerned and accordingly, they are showing signs that they will start to spend on things they want and need,” said Joan Koh, Managing Director, Nielsen Singapore and Malaysia.

The strengthening consumer outlook was also reflected in spending intention, and 36 percent of Singaporeans felt the next 12 months would be a good time to buy the things they need or want, up from 30 percent in the previous quarter.

Although the majority of Singaporeans said they put their spare cash into savings (64%), Q3 2012 saw an upswing in the number of Singaporeans intending to purchase a holiday (up 5 points to 46%) and invest in stocks and mutual funds (up 7 points to 32%).

“Stocks, mutual funds and higher-return alternatives are looking attractive to investors in Singapore despite uncertainties in the global markets. Singaporeans’ unwavering appetite for investments as well as savings continue to signal the financial services industry that the market is welcoming even more wealth management solutions,” said Koh.

“The majority of Singaporeans are putting some spare cash into savings and combined with an increased appetite for stock/mutual fund investments, this indicates a desire to seek ways to preserve and grow their wealth. Consumers here are feeling more optimistic about their personal finances and job prospects, they are out there shopping and enjoying entertainment outside of their homes, but at the same time consumers are still conscious of the amount they are spending during these uncertain times. The continuing uncertainties over global economic recovery are prompting consumers to play it safe and continue to save on household expenses.”

Despite signs that spending intentions have improved, consumers in Singapore continue to watch their household expenses and are taking steps to reduce the amount spend on regular household purchases.

The key areas where Singaporeans are trying to save include utilities (gas and electricity), new clothes, out-of-home entertainment, groceries and phone expenses.

Globally, Singapore now ranks 15th in terms of consumer confidence. Consumers in India are the most confident in Asia and in the world. The average Index for Asia Pacific in Q3 2012 is with 100 index points unchanged from the prior quarter, and up three points compared to the third quarter last year.

The region continues to lead the ranks globally as the most confident region. Global consumer confidence edged up one index point to 92 from the last quarter.