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Singapore consumer confidence rises, but fewer optimistic on Singapore's economy
CONSUMERS in Singapore are more optimistic than before about their families' financial situations, even as fewer are confident on the outlook for Singapore's economy.
This brought consumer confidence levels to its highest level since July last year, with the ANZ-Roy Morgan Singapore Consumer Confidence rising 1 per cent to 122.8 points. This is above the 2014 average of 121.1.
In personal finances, 29 per cent of respondents (up 2 percentage points) said their families are "better off" financially than a year ago, while 10 per cent (down 1 percentage point) said they are "worse off".
In a year's time, 34 per cent (up 3 percentage points) expect the situation to be better, compared to 7 per cent (down 1 percentage point) who are more pessimistic on their families' personal finances.
More are gloomy on Singapore's outlook, with 15 per cent (up 4 percentage points) expecting "bad times" economically, the highest recorded for this indicator.
Fewer respondents expect Singapore to have "good times" economically in a year, with 45 per cent indicating so (down 3 per cent).
"Though falling international oil prices are providing some short term relief to the Singaporean consumer, this does not appear sufficient to offset the overhang of supply-side restructuring which remains a major drag on the medium term assessment of the economy," said ANZ chief economist of South Asia, Asean and Pacific Glenn Maguire.
"The burdens of supply-side restructuring and the current economic circumstance are being disproportionately distributed," he added. "The lowest income quintile has been confronted with higher inflation in the second half of last year given they devote a larger share of expenditure on food whereas the higher income quartiles who spend more on cars have benefited from steep price drops in autos."