Most global consumers agree that their countries have hit recession, but opinion on how long the recession will last remains mixed, Nielsen reported Wednesday.
While 53% of those surveyed by Nielsen think their country has hit a prolonged recession that will last more than 12 months, 18% of consumers, concentrated in a handful of emerging markets, like India, Vietnam, China, and Russia, told Nielsen they expect their countries to be out of recession within the next 12 months.
In contrast, consumers in Japan, Germany, Argentina, Mexico, Turkey, Italy, Taiwan, the U.S., and Spain were the least optimistic about the prospects for quick economic recovery.
Nielsen surveyed 28,663 Internet users in 52 markets across Europe, Asia Pacific, the Americas, and the Middle East between September 22 and October 6, 2008, as part of its Global Online Consumer Survey.
The survey’s results reveal that global consumer confidence fell to a new low this month, dropping from an index of 88 in May 2008 – previously the lowest index on record – to 84 in October, according to Nielsen. Only Brazil, the Philippines, New Zealand, China, Thailand, South Africa, and Hungary showed improved consumer confidence, compared with May 2008.
Not surprisingly, consumers worldwide are adopting new strategies to reduce discretionary spending and shore up household finances.
On average, 49% of global consumers plan to spend less on new clothing, as well as gas and electricity, according to Nielsen.
Meanwhile, 47% report reducing out-of-home entertainment, 40% say they’ll delay upgrading to new PCs and mobile phones, and 39% will cut down on take-away meals from restaurants.
Even necessities, like groceries, are on the chopping block — 36% of global consumers report switching to cheaper grocery brands in order to reduce their expenses.
Overall, consumers in Australia, New Zealand, Germany, the U.K., Turkey, the U.S., Colombia, and Argentina plan to make the most changes in their spending habits, as they search for ways to weather the current economic turmoil.
View the full press release.
Read a related press release on consumer confidence in Hong Kong and Great Britain.
Read coverage of Nielsen’s findings by Sky News and in the Shanghai Daily, the Business Standard (India), Forbes, the Financial Times, The China Post, the Thanh Nien Daily, and the Malaysia Star.
Learn more about global consumer confidence levels in the December 2008 issue of Nielsen’s “Consumer Insight” online newsletter.
I think the 800 lb. gorilla in the room, that pretty much everyone ignores, is that the last 10 years have seen our economy increase in size and speed ONLY because it’s been a growth spurt funded by debt.
Debt that is UNSUSTAINABLE supporting a materialistic, consumerist culture that is just as UNSUSTAINABLE, in the long run.
Look at the economic policies in place for the last 28 years – since Ronald Reagan promised to transfer capital benefits and tax breaks to the industrialists and bankers so wealth would ‘trickle down’ on everyone else.
What have American consumers had going for them since 1990?
No serious, cost-of-living raises for the working classes that compromise that 70 percent of our NON-WEALTH generating service sector economy.
(Instead we keep the economy going forward by giving the consumer debt.)
No real, meaningful creation or support of energy technologies, that could bring the wealth CREATING *manufacturing sector* back to dominance.
(Instead we outsource manufacturing jobs to low-wage countries, in order to pay dividends to the excess investment capital in the markets, thus accelerating the loss of the wealth-creating mechanism of our economy. So to make up, we keep the economy going forward by giving the consumer MORE debt.)
No national healthcare plan whatsoever, just a patchwork of over-regulated, protocol-driven health care options, meted out by insurance companies who keep 40 out of every 100 healthcare dollars the consumer spends. (Let’s not even go into this nightmare..)
(Consumers who cannot pay their deductibles, often lose their homes to foreclosure and bankruptcy – the problem is, that much – TOO MUCH of the economy is now debt-based and the bankers took The Dow and the profit-projection, debt-speculation game too high and broke the banks. Instead, the consumers will pony up 700 billion in bailouts so that the debt mechanism of the economy will be saved from ruin. But it’s still MORE debt.)
When is the recession going to lift for EVERY consumer, not just the ones in the upscale markets?
From this realist consumer’s view, it isn’t going to happen anytime soon. God knows, I certainly saw this fiasco coming, and we all but stopped frivolous consumption in our home.
In fact, we don’t buy much but food now. we just can’t afford toys anymore. No new clothes, no new car, NO TELEVISION in our home anymore..
Get the picture?
Not what manufacturers want to hear, but if they can’t be bothered to build it in America with decently-paid American workers, this consumer just can’t be bothered to buy it.
I really do NOT care about my parent’s and grandparent’s generations’ investments for retirement.
Not if it comes at the cost we nationally are paying with our economy and the jobs prospects for those of us under 45.
Deb.
[...] It A Recession Consumers Agree But Until When Nielsen Wire Posted by root 9 minutes ago (http://blog.nielsen.com) Oct 29 2008 instead we keep the economy going forward by giving the consumer debt no real meaningful creation or support of energy technologies Discuss | Bury | News | It A Recession Consumers Agree But Until When Nielsen Wire [...]
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