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June 13 , 2008
Markham, Ontario, Canada
Markham, Ontario, June 13, 2008 – Canadians have a rosier view of their local economy than do other consumers around the globe, according to the Nielsen Global Consumer Confidence Index, which measures consumer confidence, major concerns and spending habits in 51 countries.
Globally, the mood is pessimistic. Consumer confidence worldwide has fallen to its lowest level in several years. The latest Nielsen Consumer Confidence Index dropped to 88 – down six points in the last six months – the largest single drop the Index has recorded in the last three years. The United States alone plummeted 17 points to 83.
“Consumer confidence fell in 39 out of 48 countries in the past six months, with New Zealand, USA and Latvia suffering the deepest declines,” said David Parma, global head of Customized Research, The Nielsen Company. Among the 39 markets recording a decline in consumer confidence, 15 fell by double-digits.
Consumers around the world are struggling with the same global issues that are impacting their daily lives. It’s an unfortunate pendulum. On the one hand we are seeing soaring global oil prices, rising commodity prices which are impacting grocery prices, rising interest rates and increasing inflation. This is happening in tandem with falling property prices, weakening labor markets, decreasing industrial output levels and growing unemployment rates which have all resulted in less spending power for the average person. Overall, it’s not a good picture,” commented Parma.
But while Consumer Confidence Index dropped nine points in Canada, overall it tracked above average at 104.
Also according to the Nielsen Consumer Confidence Index, only 26 percent of Canadian consumers think their country is currently in recession, compared to 56 percent globally and 85 percent in the United States.
“It’s not surprising that three in five global consumers think their country is currently in a recession. Even if their country is not officially in recession and has not recorded two quarters of negative growth – the snowball effect of the credit crunch and rising inflation has taken its toll and officially or otherwise – they certainly feel like they’re in recession,” said Parma.
Canadians’ major concerns: work/life balance, the economy
Despite having a more positive outlook in general, Canadians still hold the economy top-of-mind. In terms of major concerns over the next six months, Canadians place work/life balance at the top, followed by the economy, debt and health.
Ridding ourselves of debt
The credit crunch became an unwelcome household term in the last year, and, globally, consumers’ paycheques have been stretched to the maximum like never before. Yet, 62 percent of Canadians have an “excellent” or “good” perception of the state of their personal finances over the next 12 months and only 15 percent said they have “no spare cash” after essential living expenses are covered.
Even so, more than half (54 percent) feel that the next 12 months are a bad or not so good time to buy the things they want and need. Spare cash is going towards paying off debt.
Wary about the future
One area where Canadians are slightly more pessimistic than the global norm is the prospect of a global recession. While 26 percent of global consumers believe we will experience a full blown global recession in the next year, 30 percent of Canadians believe that will be true.
In the event of a downturn in the local economy, Canadians are most worried about unemployment, inflation, and interest rate rises.
About The Nielsen Global Online Consumer Survey
The Nielsen Global Online Consumer Survey, conducted by Nielsen Customized Research, was conducted in April 2008 among 28,153 internet users in 51 markets from Europe, Asia Pacific, North America and the Middle East. The largest half-yearly survey of its kind, the Nielsen Global Online Consumer Confidence and Opinion Survey provides insight into current confidence levels, spending habits/intentions and the major concerns of consumers across the globe. The Nielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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