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Singapore consumer confidence falls for second consecutive month

Wednesday, July 22, 2015 - 10:13
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Consumer confidence in Singapore slid in July for a second consecutive month, according to a monthly survey released on Wednesday.

CONSUMER confidence in Singapore slid in July for a second consecutive month, according to a monthly survey released on Wednesday.

This was partly due to less certainty among poll respondents that their families would be better off in a year's time.

The ANZ-Roy Morgan Singapore Consumer Confidence index fell to 126.4 in July, down three points from June, though it remained above its long-term average of 122.8 points.

This slide likely reflects the turmoil in the eurozone and slowdown in China along with the effects of domestic restructuring, Glenn Maguire, ANZ chief economist for South Asia, Asean and the Pacific, said in the survey report.

"In the near term, we expect to see sentiment improve as the achievements of Singapore over the past 50 years are celebrated. However, in the medium term, we are less certain on the direction confidence is likely to evolve. The national elections will be called in the next few months, property prices are continuing to decline and wage pressures are unevenly distributed," he added.

"If the decline in consumer confidence evolves into a deeper pullback, we will be alert to whether that will translate into softer domestic demand, and eventually into a broader slowdown."

Only 27 per cent of survey respondents thought their families were better off financially in July 2015 than they were a year ago, a drop from 29 per cent in June.

Also, 33 per cent said they expect their families to be better off financially in a year's time, compared to 36 per cent who thought so in June.

The survey began in January 2014 and is based on 1,000 face-to-face surveys of people aged 14 years and above.