Indonesia remains the optimistic zone despite a slight decline of 6.9 points to 67.9 points compared to the first half of 2017
Jakarta – According to a recent study of Mastercard Consumer Confidence Index, the level of consumer confidence in the Asia Pacific region during the second half of 2017 increased by leaps and bounds, especially because of the high optimism of the millennial.
The study also indicates that the millennial generation (ages 18-29 years) in the Asia Pacific region feel very optimistic about the situation in the next six months (72.9 points), while the older generation (over 30 years) had a more pessimistic about the future (66.7 points).
Increased economic growth, the development of the tourism industry and economic cooperation, intra-regional better in the Asia Pacific region to encourage confidence level of the region as a whole, which is 68.5 points.
Since half of the second half of 2016, an increase in optimism among both age groups, where the level of consumer confidence over the age of 30 years increased by 6.3 points while the consumers who are under 30 years old increased by 5.0 points.
This increase is reflected in consumer sentiment in the stock markets, jobs and economic performance. In particular, optimism about the stock market recorded an increase of 10.2 points among consumers under the age of 30 years.
Regardless of age group, this index found that developing countries like the Philippines (94.5 points), China (92.2 points), Cambodia (92.2 points) and Myanmar (91.7 points) recorded the highest level of optimism.
Instead, the two age groups in countries that are more advanced such as Taiwan (44.2 points), Malaysia (45.9 points) and Japan (51.0 points) tend to be more pessimistic. The high level of optimism in developing countries can be attributed to investments in infrastructure are seen to create employment opportunities and upward social mobility is greater.
During the months of October and November 2017, 9141 respondents aged 18-64 years in eighteen countries in Asia Pacific are asked to give their views on the five economic factors that include: economic conditions, job prospects, the outlook for Regular Income, Stock Market and Quality of Life.
This index is then calculated with a scale of 1 to 100, with a score of 0 means the most pessimistic score of 100 represents the most optimistic and score between 40-60 means neutral.
Details by country:
- Overall, the confidence level in the Asia-Pacific region did not show any major differences in each country. Philippines (94.5 points) who occupy the top position as the country’s most optimistic index, increased in the three components of the assessment during the last 6 months, covering the Stock Market (+11.3 points), revenues (+5.3 points) and Quality of Life (+4.4 points).
- In contrast, the index reveals that Sri Lanka (39.5 points) as the most pessimistic countries, decreased level of confidence in the Quality of Life component (-4.0 points) and the economy (-3.2 points).
- Supported by growth in retail spending and inbound tourists during the past six months, the level of consumer confidence in the age under 30 years, Hong Kong has recorded the largest increase (+21.8 points). The drastic growth of Hong Kong managed to pull out of the territory of pessimism into optimism, with a significant increase on the five components of the assessment, including Employment (+32.5 points), economy (+23.3 points), the Stock Market (+19.3), Revenue regular (+18.9 points) and Quality of Life (+15.2 points).
- Geopolitical tensions in South Korea became one of the factors which led to a decrease in the level of confidence among consumers aged under 30 years (-28.3 points) and above 30 years (-18.4 points). According to this index, South Korea experienced the largest decline, down two levels from the most optimistic territory into neutral. Meanwhile, other countries also experienced a decline in both demography is Bangladesh (-8.1 points, -9.5 points).
- Growth was recorded in the demographics of age under 30 years old in eleven countries in Asia Pacific with a steady level of movement inAustralia (+4.8 points), Myanmar (+4.4 points) and Thailand (+2.1 points). Some improvement seen in the Philippines (+6.9 points), Taiwan (+8.6 points), Malaysia (+6.2 points) and Singapore (+5.3 points) while the significant increase seen in New Zealand (15 1 point).
- The decline among consumers over the age of 30 years only in four countries in Asia Pacific, with a steady movement in Indonesia (-3.1 points) and Cambodia (-1.9 points). Some decline seen in Bangladesh (-9.5 points), while a significant decline experienced by South Korea (-18.4 points).
- Sentiment bigger difference between the two ages tend to be experienced by the developed countries in Asia Pacific. The confidence level difference between the age group above 30 years and below most occurred in Taiwan (56.5 points vs. 39.7 points), Singapore (66.1 points vs. 50.0 points) and New Zealand (76 , 3 points vs. 63.0 points).
- The level of consumer confidence over the age of 30 years beyond the segment under 30 years of age in the case in Singapore (+11 points vs. +5.3 points) and China (+5.7 points vs. +0.4 points). In Singapore, the rate is also influenced by the growing consumer population gets older, as well as growing optimism about the economic income and employment.
- Japan, Sri Lanka and India are the three countries in the Asia Pacific region decreased consumer confidence in the age under 30 years, while the increase in the age of 30 years. This phenomenon is huge in Japan where optimism among young people fell 8.8 points, while the older generation has increased the confidence of 10.9 points.