Indonesian consumers are the most optimistic globally. According to The Conference Board® Global Consumer Confidence™ Survey, in collaboration with NielsenIQ, the Consumer Confidence Index of Indonesia remains stable with 127 percentage points (pp), the same index as the previous quarter.
The Conference Board® GlobalConsumer Confidence™ Survey, in collaboration withIQ Nielsen also revealed that the 10 most optimistic countries are Indonesia (127), Philippines (127), India (124), United States (123), Vietnam (120), Denmark (118) , Malaysia (117), United Arab Emirates (116), Pakistan (115), and China (113).
Consumer Confidence Index (CCI) is driven by three indicators, i.e.Consumer Perception about: (1) Local Job Prospects, (2) Personal Finances and (3) Intention/Readiness to Spend; whereby for Indonesia, those drivers are relatively stable in the second quarter. 71% Indonesian online consumers have positive Perception towards Future Job Prospects, same as the previous quarter. 63% of consumers said that they are Ready/Intend to Spend, slightly increased from 62% in Q1 2018. Meanwhile, 82% consumers have positive perception towards their State of Personal Finances, slightly decreased from 85% in the previous quarter.
Globally, the Consumer Confidence shows a slightly declining trend, which is shown by the 2 points decrease of global index to 104 in Q2 2018, from 106 in Q1 2018. This is the first time the index has declined in two and a half years.
Saving is still the main usage of spare cash for most of Indonesian consumers. In Q2 2018, more than half (66%) of consumers chose to allocate their spare cash for savings, this figure increased from the previous quarter (65%), 46 percent chose to use it for holidays/ vacations, and 31 percent chose to buy new technology products. .
The economy, terrorism and political stability are at the top three of Indonesian consumers’ major concerns in Q2 2018. The percentage of consumers who are concerned about the economy slightly increased this quarter to 32 percent from 30 percent in Q1 2018. Concern about terrorism increased significantly from 12 percent in Q1 2018 to 31 percent in Q2 2018. Meanwhile, concern on political stability remains in 20 percent, the same as the previous quarter.
About the Conference Board® Global Consumer Confidence Survey
The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with NielsenIQ. It was conducted in February 2018 and polled more than 32,000 online consumers in 64 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa, and North America. The sample includes internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of internet consumers by country. Because the sample is based on those who agreed to participate, no estimates of theoretical sampling error can be calculated. However, a probability sample of equivalent size would have a margin of error of ±0.6% at the global level. This survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country.
The Conference Board uses a minimum reporting standard of 60% internet penetration or an online population of 10 million for survey inclusion. The NielsenIQ China Consumer Confidence Index is sourced from a separate survey conducted by NielsenIQ China, which is based on a mixed methodology survey of more than 3,000 respondents in China. The Global Consumer Confidence Survey was established in 2005.
About the Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: to provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. Winner of the Consensus Economics 2016 Forecast Accuracy Award (U.S.), The Conference Board is a non-advocacy, not-for-profit entity, holding 501(c)(3) tax-exempt status in the USA. Visit http://www.conferenceboard.org
Download The Conference Board Global Consumer Confidence Report here.