Consumer confidence peaks in emerging markets

12 August 2010

LONDON: Consumers in emerging markets such as Brazil, India and China are among the most confident in the world, but perceptions are far less favourable in the US and Western Europe.

Ipsos Mori, the research firm, surveyed 19,000 people in 24 countries across the globe, in order to gain an insight into popular impressions of the financial outlook.

Similarly, 63% of participants in Spain believed the condition of the domestic economy was "very bad", as did 41% of their counterparts in Japan and 34% in the UK.

Moreover, just 5% of the Spanish panel thought their personal circumstances were good, a rating that reached 6% in France, 13% in the UK and 18% in the US.

In contrast, 85% of respondents in India gave a positive assessment of the fiscal climate, a figure which stood at 77% in China and 65% in Brazil, compared with an average of 39%.

"The global data ... show something quite unexpected - a flatline 'L' in consumer confidence," said Cliff Young, a managing director at Ipsos.

"Indeed, after a slight recovery between mid-2009 and the beginning of 2010 - mostly driven by China, Brazil and India - global consumers have remained pessimistic about the economy."

The main causes of anxiety included high unemployment and national debts, with France, Italy, Spain, the UK and US some of the countries where negativity was especially widespread.

Attitudes were more upbeat in Australia and Canada, with 70% of adults suggesting their economies seemed to be in a reasonably strong state.

Nearly 40% of Germans felt the same way.

Elsewhere, a majority of the sample in South Africa had a neutral or downbeat opinion regarding the financial climate, despite the fact the nation hosted a successful football World Cup over the summer.

Data sourced from Financial Times; additional content by Warc staff