THIRD QUARTER 2011 KOREAN CONSUMER CONFIDENCE DIPPED TO LOWEST LEVEL SINCE END OF 2009

SEOUL--(Korea Newswire)--Consumer confidence in Korea dipped to 49 points in the third quarter of 2011, a 3-point decline compared to Q2 2011 and the lowest level recorded since the Q4 2009.

According to the latest global online consumer confidence findings from Nielsen, a leading global provider of insights and analytics into what consumers watch and buy, 1 in 5 (20%) Korean consumers regard job security as their biggest concern over the next 6 months, followed work/life balance (13%) and the economy (12%). Concerns about job security, which had trailed work/life balance, childrens’ educations/welfare and the economy in the second quarter of 2011, emerged as the top concern for Koreans in the third quarter.

Reflecting the concern about job security, Nielsen’s survey also revealed that almost 9 out of 10 Koreans (89%) believe their job prospects over the next 12 months will not be good/will be bad, up from the second quarter of 2011 (83%).

“The economy re-emerged as the top concern among 18 percent of online consumers across the globe. The economy last topped concerns in Q4 2010, before it was replaced by worries over increasing food prices in the first half of this year. Job security follows closely behind for 14 percent of consumers, rising five percentage index from three months ago. Managing a work/life balance, increasing food prices and concerns about health round out the top five most stressful issues for respondents.” said Eun-Hee Shin, Managing Director, Nielsen Korea. “Korea society is currently facing with youth unemployment and instability of the employment seriously and these lead to a result that job security brought out as the most concerned issue.” added Shin.

Spending likely to be restrained over coming year

Nielsen’s analysis shows that almost 9 out of 10 (88%) consumers in Korea believe the next 12 months will not be a good time /will be a bad time to buy the things they want and need. This is an increase of 3 percentage points over Q2 2011.

Even if they feel that the economy in future, Koreans expect to continue to reduce their spending on take-away meals (28%), utilities (23%) and switch to cheaper grocery brands (18%).

Savings is still the most popular destination for spare cash for Koreans

When asked how they would utilize their spare cash, more than 1 in 2 (57%) said they would put some into savings, similar to the Asia Pacific average (61%) but higher than the global average (46%).

After savings, the second most popular use of spare cash for Korean consumers is holidays/vacations (24%), followed by investing in shares of stock/mutual funds, paying off debts/credit card/loans and new clothes (each 20%). Asia Pacific consumers also indicated strong intentions to invest in shares of stock/mutual funds (33%) with their spare cash.

Nielsen’s survey also showed that 14 percent of Koreans do not have spare cash (unchanged from Q2 2011), which is similar to the global average (15%), but much more higher than Asia Pacific region (6%).

“Korean consumers are at a cross-road. On one hand, there is a sense of weariness and pent-up desire for a respite, as indicated by intentions to spend on holidays and new clothes. On the other hand, they also feel uncertain about the economic and a need for a safety net, hence the intention to bolster their savings/investments,” Shin said.

82 percent of Koreans feel their country is in a recession …up 7 percentage points from Q2 2011

Reflecting the less than optimistic local economic situation, a majority of Korean respondents (82%) feel the country is currently in a recession, much more higher than the global average of 62% in the third quarter of 2011. In comparison, the Asia Pacific average for the same quarter was 50%.

Highlights of third quarter consumer confidence around the world….

Global Consumer Confidence in the third quarter was 88 points, a 1-point quarter-on-quarter decline. The Asia Pacific and Latin America regions remained the most confident regions. (both at 97 points).

India, despite a decline of five points, retained the top spot as most confident country with an index of 121, followed by Saudi Arabia (120), Indonesia (114), Brazil (112 ), Philippines (112), Thailand (109), United Arab Emirates (105), China (104), Hong Kong (104) and Malaysia (101). Hungary (37) was the most pessimistic country in the third quarter, followed by Portugal (40), South Korea, Romania and Croatia (49 index).

Website: https://nielseniq.com

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