Survey shows global consumer confidence deteriorates in 2009

Wed Apr 22, 2009 6:18am EDT
By Susan Fenton
HONG KONG (Reuters) - Consumer confidence has sunk further globally in the past six months, despite government efforts to boost consumption, and remains weakest in South Korea, according to a global survey.
The twice-yearly survey, published by the Nielsen Company on Wednesday, shows confidence has deteriorated since last autumn in 48 of 50 markets covered worldwide. Only consumers in Indonesia and Denmark are upbeat, but less so than six months ago, while previously positive Indian consumers have turned cautious, according to the survey.
"Despite the various fiscal stimulus plans put on the table by governments around the world, the business outlook continues to be bleak and there is no sign of consumer confidence picking up globally," the Nielsen Company said in a statement.
The survey, which polled 25,000 Internet users in 50 countries in March and April, recorded an average global score of 77, down from 84 in the previous survey published in November.
A reading above 100 is considered upbeat. The highest reading since the index's launch in 2005 was 137, an individual score for India in the second half of 2006. India's score was 99 in the latest survey.
As the credit crisis and impact of economic recession in advanced countries has affected emerging markets, consumer confidence in the other so-called BRIC countries -- Brazil, Russia, India and China -- has declined sharply in the past six months.
However, the drop was much less marked in China, where consumers remain among the top 10 most confident consumers globally. Consumers in parts of Eastern European were among the most pessimistic and confidence plunged in Hungary and Latvia.
South Koreans retained the most pessimistic ranking, followed by Japan, as both economies have been hit by plunging exports this year as global demand has evaporated.