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Singapore consumer confidence up in May: survey
SINGAPORE consumer confidence rose four percentage points to 129.7 in May, according to the ANZ-Roy Morgan Singapore Consumer Confidence index released on Wednesday.
Glenn Maguire, ANZ chief economist in South Asia, Asean & Pacific, said: "Singaporean consumer confidence has now risen for three months in a row ... Indeed, taking a longer run view of our consumer confidence series, it has been broadly tracking upwards from its low in early 2014, a dynamic matched by the improvement in retail sales over that same period.
"Encouragingly, the slope of the consumer confidence index has steepened in recent months, suggesting that the consumer confidence recovery may be gaining traction."
The index is now clearly above its long-term average of 122.2, said the report, which found that confidence rose across all components, including personal finance and economic conditions in Singapore - both now and in a year's time.
Mr Maguire added that over the past month, developments such as a further reduction in electricity tariffs and a fall in holiday travel costs (with the removal of airline fuel surcharges), a one-year road tax rebate and a reduction in the concessionary foreign domestic helper levy may have boosted sentiment on disposable income, thus encouraging consumption.
But he cautioned exuberance, saying: "Still, with consumption only accounting for one-third of GDP, overall confidence and household spending will track the evolution of the Singaporean economy."