Singapore consumers likely to cut back on spending in 2013: survey

SINGAPORE: Consumers in Singapore were less confident in the last quarter of 2012, signalling a potential slowdown in consumer spending in 2013, according to a survey by global information and measurement company, Nielsen.

It found that consumer confidence fell by three index points to 95 points, after a short—lived uptick in the third quarter.

More consumers are likely to hold back on spending over the next 12 months.

There was a 3—point increase in the number of such consumers — to 64 per cent — compared with Q3.

Also higher — those who feel that their future job prospect would not be good — by four points to 49 per cent.

In the last quarter of 2012, 63 per cent of consumers indicated they’ve changed their spending habits to save on household expenses.

The number rose slightly from 62 per cent in Q3.

The top three areas where consumers have cut back on are in clothes (55 per cent), grocery (47 per cent) and utilities (47 per cent).

One in five respondents indicated their top concern is job security, unchanged from the previous quarter.

Fifteen per cent cited the economy as their main concern, down 3 points from the previous quarter’s 18 per cent.

One third believed the country is in recession, stable since Q3 (34 per cent).

Among those who believed the country is in recession, 61 per cent felt the economy will recover over the next 12 months.

— CNA/ck