Nielsen Q4 2013 Global Consumer Confidence Report

18
CONSUMER CONFIDENCE CONCERNS AND SPENDING INTENTIONS AROUND THE WORLD QUARTER 4, 2013 2013 CONSUMER CONFIDENCE SERIES | 4 TH EDITION

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Transcript of Nielsen Q4 2013 Global Consumer Confidence Report

Page 1: Nielsen Q4 2013 Global Consumer Confidence Report

C O N S U M E R C O N F I D E N C ECONCERNS AND SPENDING INTENTIONS AROUND THE WORLDQUARTER 4, 2013

2013 CONSUMER CONFIDENCE SERIES | 4TH EDITION

Page 2: Nielsen Q4 2013 Global Consumer Confidence Report

2 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT2

GLOBALLY • Globalconsumerconfidenceheldsteadyforthirdconsecutivequarter

withanindexof94

• Discretionaryspendingintentionsdeclinedinallregions

• Morethanhalfofrespondentsin46of60countriesfeltmiredinrecession

• Asia-PacificpostedtheonlyregionalconsumerconfidenceincreaseinQ4,uponeindexpoint

• RecoveryinEuropecontinuedtoshowslow,butsteadyprogress

GLOBAL CONSUMER CONFIDENCE HELD STEADY AT THE END OF 2013, WHILE SPENDING INTENTIONS RETREATED

Globalconsumerconfidenceheldsteadywithanindexof94forthree

consecutivequarters,ending2013onepointhigherthanitstarted

(Q12013)andthreepointshigherthanthesametimeperiodthe

previousyear(Q42012),accordingtoconsumerconfidencefindings

fromNielsen,aleadingglobalproviderofinformationandinsightsinto

whatconsumerswatchandbuy.TheNielsenconsumerconfidenceindex

measuresperceptionsoflocaljobprospects,personalfinancesand

immediatespendingintentions.

ConsumerconfidenceinAsia-Pacificpostedtheonlyregionalquarter-

on-quarterincrease,risingoneindexpointto105.Regionalconsumer

confidencedeclinedthreeindexpointsinNorthAmerica(95),twopoints

inMiddleEast/Africa(90)andonepointinEurope(73),compared

Page 3: Nielsen Q4 2013 Global Consumer Confidence Report

3Copyright © 2014 The Nielsen Company 3

ABOUT THE GLOBAL SURVEY METHODOLOGY

Thefindingsinthissurveyarebasedonrespondentswithonline

accessacross60countries.Whileanonlinesurveymethodologyallows

fortremendousscaleandglobalreach,itprovidesaperspectiveonly

onthehabitsofexistingInternetusers,nottotalpopulations.

Indevelopingmarketswhereonlinepenetrationhasnotreached

majoritypotential,audiencesmaybeyoungerandmoreaffluentthan

thegeneralpopulationofthatcountry.Additionally,surveyresponses

arebasedonclaimedbehavior,ratherthanactualmetereddata.

toQ3.ConfidenceremainedflatinLatinAmericawithanindexof94.

Consumerconfidenceincreasedin26of60marketsinQ4,decreasedin

32andremainedflatintwo.

“Throughout2013,consumersaroundtheworldremainedinavirtual

holdingpatternasglobalunemploymentshowedfewsignsofprogress

duringtheyear,”saidDr.VenkateshBala,chiefeconomistatThe

CambridgeGroup,apartofNielsen.“Recoverycontinuestomovevery

slowlyandishamperedbycash-strappedconsumerswhograpplewith

havinglittlediscretionaryincomeafterpayingessentialexpenses.As

2014progresses,abrighteroutlookisexpected,butsluggishnesswill

continueuntilthereisamarkedimprovementinthejoblessrateand

wagesgoupcommensuratewithrisingcosts.”

TheNielsenGlobalSurveyofConsumerConfidenceandSpending

Intentions,establishedin2005,measuresconsumerconfidence,

majorconcernsandspendingintentionsamongmorethan30,000

respondentswithInternetaccessin60countries.Consumerconfidence

levelsaboveandbelowabaselineof100indicatedegreesofoptimism

andpessimism.

Inthelatestroundofthesurvey,conductedNovember11–29,2013,

consumerconfidenceincreasedin43percentofmarketsmeasured

byNielsen,whichwas14percentagepointslowerthanthe57percent

reportedinthepreviousquarter(Q32013).Indonesiareportedthe

highestconsumerconfidenceindex(124)forthefourthconsecutive

quarter,risingfourindexpointscomparedtoQ3.Portugal,Italy,Croatia

andSloveniaeachreportedthelowestconsumerconfidenceindexof

44.Colombiareportedthebiggestquarter-on-quarterindexincreaseof

ninepointsforascoreof93;thebiggestdeclinecamefromPortugal,

decreasing11indexpoints.

Page 4: Nielsen Q4 2013 Global Consumer Confidence Report

4 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

GLOBAL CONSUMER CONFIDENCE SURVEY

60 COUNTRIES – 3-MONTH TRENDQ4-2013 NIELSEN CONSUMER CONFIDENCE INDEX

*SurveyisbasedonrespondentswithInternetaccess.Chinasurveyresultsreflectamixedmethodology.Indexlevelsaboveandbelow100indicatedegreesofoptimism/pessimism.

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

NORTH AMERICA LATIN AMERICA EUROPE MIDDLE EAST, AFRICA, PAKISTAN ASIA-PACIFIC

+3-4

+1-1

+1-3

-1

+2

+8

+4

+3

+3

+4

+1

-3

-1

0

+3

-1

-4

-2

-4+9

+1+2

-1+2+3-3+1+6-1-10

-3+8

-70

-6

-2

+1

-3

-1

+3

-1

+5

+4

-1

-4

+2

-2

-10

+6

-5-3

-3

-1

84 UN

ITED KIN

GD

OM

85 SWED

EN 86

SOUTH

AFRICA 86

AUSTRIA 87 TURKEY

89 ISRAEL

ITALY 44

93 COLOMBIA

GREECE 45

94 SWITZERLAND

SOUTH KOREA 49

HUNGARY 51

94 NORWAY

FRANCE 51

94 UNITED STATES

SERBIA

54

95 AUSTRALIA

SPAIN 58

95 GERMANY

ROMANIA 62

97 PAKISTAN

BULGARIA 62

97 SINGAPORE

UKRAINE 63

98 MALAYSIA

SLOVAKIA 65 98 VIETNAMFINLAND 67 99 CHILE

POLAND 69

100 CANADA

CZECH REPUBLIC 71

100 NEW ZEALAND

TAIWAN 73

101 SAUDI ARABIA

ESTONIA 73

102 PERU

VENEZUELA 74

105 DENMARK

BELGIUM 75

105 HONG KONG

LATVIA

76

109 THAILAND

EGYPT 7

6

110 B

RAZIL

IRELA

ND

77

110

UNITE

D ARAB EMIR

ATES

ARGENTIN

A

77

111

CHINA

NET

HERL

ANDS

77

114

PHIL

IPPI

NES

MEX

ICO

7

8

115

IN

DIA

RUSS

IA

79

JAPA

N

8

0LI

THU

ANIA

8

2

-3

SLOVENIA

44

+4

124

IN

DO

NES

IA

IND

EX

COU

NTR

Y

LESS

CONFIDENT

MORE CONFIDENT

-4

CROATIA

44

-11

PORTUGAL

44

94 GLOBAL

AVERAGE( 0 change from Q3-2013 )

INDEXES ABOVE 100 INDICATE OPTIMISM

Page 5: Nielsen Q4 2013 Global Consumer Confidence Report

5Copyright © 2014 The Nielsen Company

60 COUNTRIES – 3-MONTH TRENDQ4-2013 NIELSEN CONSUMER CONFIDENCE INDEX

5

CASH-STRAPPED CONSUMERS SHOWED SPENDING RESTRAINTInacompletereversalfromQ3performance,Nielseninformation

showsthataroundtheworld,discretionaryspendingintentionsdeclined

acrossallcategoriesmeasuredinthefourthquarter.Spendingon

out-of-homeentertainment(28%)reportedthebiggestdecreaseof7

percentagepoints,comparedtoQ3.Intentionstospendonnewclothes

(31%),holidays/vacations(32%),andinvestinginstocksandmutual

funds(19%)eachdecreased6percentagepointsinthefourthquarter.

Savingintentions(47%),spendingonnewtechnology(24%)and

homeimprovementprojects(20%)declined5percentagepointseach.

Globally,15percentofonlinerespondentssaidtheyhadnosparecash,

anincreasefrom13percentreportedinQ3.

TherestraintinspendingintentionswasmostpronouncedinAsia-

Pacific,wherediscretionaryspendingintentionsdecreased12-percentage

pointsfornewclothesand10percentagepointseachforholidays/

vacations,out-of-homeentertainmentandinvestinginstocks.While60

percentofAsia-Pacificrespondentssaidtheyputcashintosavings—the

highestofanyregion—itwasadropfrom69percentreportedinQ3.

Spendingdeclineswerealsoreportedintheotherregions,albeittoa

lesserextent.Acrosseachoftheninespendingcategoriesmeasured,an

averagedeclineof4percentagepointswasreportedinNorthAmerica,

3percentagepointsintheMiddleEast/Africaand1percentagepointin

EuropeandLatinAmerica.

“Growthindevelopingmarketsisslowingandwithweakerprospects

thanbefore,theyarecompetingforinvestmentandfinancialresources

asadvancedeconomiesrecover,”saidDr.Bala.“Recession-minded

consumerswhoarealreadychallengedbyrisinglivingexpensesshowed

areluctancetospendleadinguptotheholidayseasonandkepttheir

moneyintheirwallets.”

Page 6: Nielsen Q4 2013 Global Consumer Confidence Report

6 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

CONSUMERS PULLED BACK ON SPENDING IN Q4 2013

GLOBAL AVERAGE - SPARE CASH SPENDING INTENTIONS

Q3 2013 Q4 2013

SAVINGS PAYING DEBTS

52%

47%

HOLIDAYS/VACATIONS HOME IMPROVEMENTS

38%

32%

NEW CLOTHES INVESTING

38%

31%OUT-OF-HOME ENTERTAINMENT RETIREMENT

35%

28%

NEW TECHNOLOGY NO SPARE CASH

29%

24%

28%

24%

25%

20%

25%

19%

14%

11%

13%

15%

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

Page 7: Nielsen Q4 2013 Global Consumer Confidence Report

7Copyright © 2014 The Nielsen Company

GLOBAL AVERAGE - SPARE CASH SPENDING INTENTIONS

RECESSIONARY SENTIMENT LINGEREDEventhoughit’sbeenfouryearssincetheofficialendoftheGreat

Recession,notmuchhaschangedforthemajorityofconsumersaround

theworldwhostillfeltentangledinitswake.Morethanhalf(57%)of

globalrespondentsbelievedtheircountrywasinaneconomicrecession

inthefourthquarterof2013,littleimprovementfromthe56percent

thatfeltthesameatthestartoftheGreatRecessioninthefirstquarter

of2008.AttheheightoftheGreatRecessioninQ12009,77percentof

globalconsumerfeltmiredinrecession.

Forrespondentsinthree-quartersofthecountriessurveyed,the

recessionarysentimentreportedinQ42013wasactuallyworsethanthe

outlookreportedinQ12008.SinceQ12008,double-digitrecessionary

sentimentincreaseswerereportedin23countries,withthebiggest

changesinFinland(+68percentagepoints),Netherlands(+47pp),

Poland(+43pp),Vietnam(+37pp),Russia(+31pp),CzechRepublic

(+29pp),Ireland(+25pp),Venezuela(+24pp),Mexico(+22p),andIndia

(+20pp).

Onapositivenote,arecessionarysentimenthasgraduallydeclined

amongtheworld’slargesteconomies,includingtheU.S.,whichreported

adecreaseinrecessionarysentimentof14percentagepoints(compared

tothestartoftheGreatRecession).Germany’srecessionarysentiment

alsodecreased9percentagepoints,andJapan’ssentimentdecreased

3percentagepointssinceQ12008.

“Whiletherecoveryhasbeenpainfullyslow,itisimportanttopointout

thatrecoveryinmanykeyeconomiesisontherighttrack,”saidDr.Bala.

TheU.S.,Germany,Japanand33othercountries,whichincludesChina,

theUnitedKingdomandFrance,eachended2013withhigherconsumer

confidencescoresthanatthestarttheyear.”

Page 8: Nielsen Q4 2013 Global Consumer Confidence Report

8 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

PERCENT THAT BELIEVE THEIR COUNTRY IS IN AN ECONOMIC RECESSION

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

COUNTRIES WITH IMPROVED RECESSIONARY SENTIMENT SINCE THE GREAT RECESSION

81%

88%

92%

36%

77%

73%

85%

47%

61%

52%

83%

75%

ESTONIA

LATVIA

TURKEY

CHILE

INDONESIA

LITHUANIA

UNITED STATES

GERMANY

PHILIPPINES

NEW ZEALAND

HUNGARY

JAPAN

49%

63%

68%

14%

60%

57%

71%

38%

54%

46%

78%

72%

-32%

-25%

-24%

-22%

-17%

-16%

-14%

-9%

-7%

-6%

-5%

-3%

Q1 2008

Q42013

PERCENTAGE POINT CHANGE FROM Q4 2013 TO Q1 2008

100%50%0%

Page 9: Nielsen Q4 2013 Global Consumer Confidence Report

9Copyright © 2014 The Nielsen Company

U.S. CONFIDENCE DECLINED; CANADA IMPROVEDU.S.consumerconfidencedeclinedfourindexpointsinthefourth

quarterof2013deliveringascoreof94,whichwasuponepointfrom

thestartoftheyearandfivepointsfromthesametimeperiodthe

previousyear(Q42012).Therecessionwasstillfirmlyonthemindsof

nearlythree-quarters(71%)ofAmericansandtheeconomywasthetop

concernforone-fourth(26%).

Fourth-quarterdiscretionaryspendingintentionsintheU.S.also

retreatedfromthegainsreportedinQ3,declining7percentagepoints

forbuyingnewclothes(24%)andpayingoffdebts,creditcardsand

loans(31%).Spendingonout-of-homeentertainment(18%)declined

6percentagepoints,plansforhomeimprovements(19%)decreased

5percentagepoints,stashingcashintosavings(39%)decreased4

percentagepointsandbuyingnewtechnology(17%)declined4points,

comparedtoQ3.

“WhileU.S.consumerconfidencedeclinedinthefourthquarter,the

countryispoisedtobethekeygrowthengineoftheworldeconomy,”

saidDr.Bala.“OneofthebiggestchallengesfortheU.S.consumerwill

begettingwagesandincomestogrowtosupportconsumerdemand,

especiallyforthemiddleclass.”

“SpendingsetbacksformanyAmericanstranslatedtoweaker-than-

expectedholidaysalesatretail,”saidJamesRusso,seniorvicepresident,

GlobalConsumerInsights,Nielsen.“Onlineintentionsduringthe

holidayseason,however,faredbetter,as46percentsaidtheyshopped

onCyberMonday,anincreasefrom30percentlastyear.Asweenter

2014,theU.S.consumerremainsbifurcated,cautiousandpragmatic.”

Page 10: Nielsen Q4 2013 Global Consumer Confidence Report

10 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

ConsumerconfidenceinCanadaincreasedthreeindexpointsinthe

fourthquarteraftertwoquartersofdeclinesdeliveringascoreof100,

whichremainedflatfromthesametimeperiodthepreviousyear(Q4

2012).Fourthquarterimprovementsinjobprospects,personalfinances

andspendingintentionshelpedbolsterconsumerconfidencefor

Canadians.

“Canadiansweremoreoptimisticabouttheirfinancesinthefourth

quarterandtookadvantageofcross-bordershoppingintheU.S.,”said

CarmanAllison,vicepresident,ConsumerInsights,NielsenCanada.

“InordertokeepspendinginCanada,manyretailersimplementedU.S.-

basedpromotionssuchasBlackFridayandCyberMondaytojumpstart

theholidayseason,whichtranslatedtoanincreaseinoverallretailsales

of3.5percentcomparedtolastyear.Whileconsumervolatilityremains,

lowerunemploymentandinflationlevelscontributedtotheoptimistic

sentimentamongCanadians.”

CONSUMER CONFIDENCE INDEX IN NORTH AMERICA

UNITED STATESCANADA

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

100

89

102

93

98 96 97

98 100

94

Page 11: Nielsen Q4 2013 Global Consumer Confidence Report

11Copyright © 2014 The Nielsen Company

THE PACE OF RECOVERY WIDENED IN EUROPEConsumerconfidencefellin18of32marketsinEuropeinthefourth

quarterwiththebiggestindexdeclinescomingfromtheprevious

quarter’sbiggestgainers.Confidencedeclined11indexpointsin

Portugal,10pointsinFranceandsixpointsinBelgium,comparedtoQ3.

Nineoutof10countrieswiththelowestconsumerconfidencescores

hailedfromEurope,withPortugal,Croatia,Italy,GreeceandSloveniaat

thebottom.

Positivenews,however,camefromtheregion’slargesteconomy—

Germany,whichpostedaconfidencescoreof95,threepointshigher

thanQ3andeightpointsaheadofthesametimeperiodtheprevious

year(Q42012).Denmarkwastheonlycountryintheregiontopost

aconfidencescoreabovetheoptimismbaselinewithanindexof105.

MorethanhalfofrespondentsinSwitzerland(56%),Germany(56%)

andNorway(51%)citedconfidenceinjobprospectsfor2014.

“Europehasstabilized,butfacesalongandgradualroadtoeconomic

recovery,”saidDr.Bala.“Whileprogresshasbeenpainfullyslow,the

relativelevelsofpessimismintheregionarebetterthanayearagowhen

manyofEurope’skeyeconomieshitall-timelows.”

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

CONSUMER CONFIDENCE INDEX IN EUROPE

Q42013(CIRCLESDENOTEINDEXDIFFERENCEFROMQ3)

Denmark

Germany

Norway

Switzerland

Israel

Turkey

Austria

Sweden

UnitedKingdom

Lithuania

Russia

Ireland

Netherlands

Latvia

Belgium

Estonia

CzechRepublic

Poland

Finland

Slovakia

Ukraine

Romania

Bulgaria

Spain

Serbia

Hungary

France

Greece

Croatia

Slovenia

Italy

Portugal

105 |

95 |

94 |

94 |

89 |

87 |

86 |

85 |

84 |

82 |

79 |

77 |

77 |

76 |

75 |

73 |

71 |

69 |

67 |

65 |

63 |

62 |

62 |

58 |

54 |

51 |

51 |

45 |

44 |

44 |

44 |

44 |

2

3

-2

-4

1

2

-1

3

-3

1

-1

8

-1

0

-6

1

-1

3

-1

5

4

-4

-1

2

-2

6

-10

-3

-4

-3

-3

-11

Page 12: Nielsen Q4 2013 Global Consumer Confidence Report

12 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

“Germany’shealthypositionamongtheeuro-crisiscountriesthroughout

2013hasoncemoreimpactedconsumerconfidence,whichledtoa

record-high(since2005)indexreading,”saidIngoSchier,managing

director,NielsenGermany.“Withtheelection’scoalitionagreementin

sightwhentheNielsensurveywasfielded,stablepoliticalconditions

aswellasgoodeconomicperspectivesfor2014seemtohavegivena

furtherboostinconfidence.Noteventheriseofinflationandespecially

theriseoffoodpricestowardstheendoftheyeardampenedthe

positiveatmosphere.”

Among32Europeanmarkets,thejoboutlookforthecomingyear

increasedin12countries,declinedin15andremainedflatinfive.

Irelandwastheonlycountrytopostabuoyantdoubledigitincrease

injobprospectsfor2014,asconsumerconfidencereboundedtoits

highestlevel(77)sinceQ32008.

“InIreland,unemploymentcontinuestofallandisnowatitslowest

levelsince2009,theOctoberbudgetbroughtcertaintyfortheconsumer,

andcontinuedlowinflationandinterestratesspellgoodnewsfor

households,”saidMaureenMooney,commercialdirector,Nielsen

Ireland.“Reportsofclimbingpropertypricesareanotherindicatorof

acountrymovingforwardandapositivesignforthestartof2014.”

Page 13: Nielsen Q4 2013 Global Consumer Confidence Report

13Copyright © 2014 The Nielsen Company

OPTIMISM REIGNED IN ASIA-PACIFIC AllconfidenceindicatorspostedmarginalgainsinAsia-Pacificinthe

fourthquarter,witha2-percentagepointincreaseforjobprospects

(62%),a1-percentagepointincreaseforpersonalfinances(62%)and

a3-percentagepointriseforspendingperceptionsoverthenext12

months(43%).Consumerconfidenceincreasedinsixof14countries,

witharobustquarterlyjumpof6percentagepointsinJapan,which

posteditshighestindexsince2005of80.Chinaincreasedoneindex

pointinthefourthquarterforascoreof111.

“InJapan,theboostinoptimismfollowspositivedevelopmentsduring

2013,whichincludeaweakeryenthatcontributedtotherecoveryof

exportsandariseintheNikkeistockaverage,”saidToshihiroFukutoku,

managingdirector,NielsenJapan.“InanticipationoftheApril2014sales

taxhike,Japaneseconsumershavebeenspendingmore,butcaution

prevailsforthesecondhalfoftheyear.”

Indiaalsoreverseditsdownwardconfidencetrendofthelastthree

quartersbyreboundingthreeindexpointsto115inthefourthquarter.

ThepercentageofIndianswhofeltmiredinrecessiondeclined14

percentagepointsto62percentfrom76percentinQ3.

“InIndia,theimprovedperceptionforconsumersattheendof2013

comesinthewakeofrelativeeconomicstabilityandareductionin

negativenewsreportsacrosseconomicparameters,”saidPiyush

Mathur,president,NielsenIndia.“Inthefirstquarterof2014,

continuinginflationandupcomingelectionsmayimpactconsumers

whoarelikelytotightentheirpursestringsnowthatthefestivaland

holidayperiodsareover.”

Theoutlookforjobprospectsinthenextyearincreasedineightof14

countries,withhealthyquarterlyconfidenceincreasesinJapan(+8

percentagepoints),India(+7pp),Indonesia(+5pp),Australia(+5pp)

andNewZealand(+4pp).Theoverallrecessionarysentimentinthe

regionfellby3percentagepointsto44percent,comparedtoQ3.While

overallconfidenceintheregionwasoptimistic,cautionarywindsprevail

asdiscretionaryspendingintentionsdeclinedacrossallcategories

measured.

Indonesia

India

Philippines

China

Thailand

HongKong

NewZealand

Vietnam

Malaysia

Singapore

Australia

Japan

Taiwan

SouthKorea

124

115

114

111

109

105

100

98

98

97

95

80

73

49

4

3

-4

1

-3

-1

3

1

-3

-1

-1

6

-3

-5

CONSUMER CONFIDENCE INDEX IN ASIA-PACIFIC

Q4 2013(CIRCLES DENOTE INDEX DIFFERENCE FROM Q3)

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

Page 14: Nielsen Q4 2013 Global Consumer Confidence Report

14 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

LATIN AMERICA REPORTED BIG CONFIDENCE SWINGSBrazilledtheregionwiththehighestindexof110,whichincreased

onepointcomparedtoQ3anddeclinedonepointfromthesametime

periodthepreviousyear(Q42012).Thebiggestquarter-on-quarter

indexincreaseswerereportedinColombia(93),Peru(102)andChile

(99),whichincreasednine,eightandfourindexpoints,respectively.

Conversely,consumerconfidenceinMexico(78),Argentina(77)and

Venezuela(74),declined10,threeandtwoindexpoints,respectively

comparedtoQ3.

“InBrazil,consumersmaintainedtheirconfidenceatarelativelystable

andpositivelevel,asjobsandsalariesheldsteady,”saidEduardo

Ragasol,countrymanager,NielsenBrazil.“Butthepressureofrising

pricesanddebtsarekeepingfast-movingconsumergoodssalesin

checkandyear-on-yearretailperformanceremainedflat.”

Similartothequarterlyswingsinconsumerconfidencereportedin

theregion,arecessionarysentimentfollowedsuit,postingquarterly

improvementsinColombia(-10percentagepoints),Chile(-9pp),

Peru(-8pp)andBrazil(-4pp),whilethenumberofthosewhofeltin

recessionincreasedinMexico(+10pp)andVenezuela(+2pp).

Regionally,discretionaryspendingrestraintwasreportedfornew

clothes(26%)andout-of-homeentertainment(27%),witheach

decreasing3percentagepoints,comparedtoQ3.Animprovement,

however,wasmadeforintentionstosavesparecash,whichincreased

2percentagepointsto31percentinthefourthquarter.

CONSUMER CONFIDENCE INDEX IN LATIN AMERICA

Q4 2013 (CIRCLES DENOTE INDEX

DIFFERENCE FROM Q3)

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

BRAZIL

PERU

CHILE

COLOMBIA

MEXICO

ARGENTINA

VENEZUELA

110

102

99

93

78

77

74

1

8

4

9

-3

-2

-10

Page 15: Nielsen Q4 2013 Global Consumer Confidence Report

15Copyright © 2014 The Nielsen Company

RECESSION ON THE MINDS OF MANY IN THE MIDDLE EAST/AFRICA ConsumerconfidenceintheMiddleEast/Africadeclined2percentage

pointsquarterlyfrom90inthefourthquarter,withoptimisminEgypt

declining7indexpointsto76,reversingitssix-pointindexgaininQ3.

Mostconfidentwereoil-richnationsofUnitedArabEmirates(110),

whichdecreasedoneindexpointcomparedtoQ3,andSaudiArabia

(101),whichincreasedfourindexpoints.ConfidenceinSouthAfrica

postedatwo-pointquarterlyincreaseto86andPakistanheldsteady

at97.

Three-quartersofrespondentsintheMiddleEast/Africaregionbelieved

theywereinrecessioninthefourthquarter(thehighestofanyregion),

ariseof1percentagepointfromQ3and2pointsfromthesametime

periodthepreviousyear(Q42012).RespondentsinEgypt(86%)and

Pakistan(82%)reportedthehighestlevelsofrecessionarysentiment.

Conversely,respondentsinUnitedArabEmirates(44%)andSaudi

Arabia(51%)reportedthelowestrecessionarysentiment.SouthAfrica

postedadouble-digitrecessionary-sentimentimprovementof

67percent,downfrom77percentinQ3.

Regionaldiscretionaryspendingintentionsdecreasedforallcategories

measuredinthefourthquarter,withspendingonnewclothes(23%),

out-of-homeentertainment(18%)andholidays/vacations(13%)

declining4percentagepointseach.Declining2percentagepointseach

comparedtoQ3werespendingintentionsfornewtechnology(17%)and

homeimprovementprojects(14%).Investinginsharesofstocks(8%)

andsavingforretirement(4%)alsodeclinedby2percentagepoints

each.One-fourthofrespondentssaidtheyhadnosparecash,

anincreaseof3percentagepointscomparedtoQ3.

CONSUMER CONFIDENCE INDEX IN MIDDLE EAST/AFRICA

Q4 2013 (CIRCLES DENOTE INDEX DIFFERENCE FROM Q3)

Source:NielsenGlobalSurveyofConsumerConfidence&SpendingIntentions,Q42013

-1

4

0

2

-7

UNITED ARAB EMIRATES

SAUDI ARABIA

PAKISTAN

SOUTH AFRICA

EGYPT

110

101

97

86

76

Page 16: Nielsen Q4 2013 Global Consumer Confidence Report

16 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT

Source:InternetWorldStats,June30,2012

MARKET INTERNET PENETRATION

AUSTRALIA 89%

CHINA 40%

HONGKONG 75%

INDIA 11%

INDONESIA 22%

JAPAN 80%

MALAYSIA 61%

NEWZEALAND 88%

PHILIPPINES 32%

SINGAPORE 75%

SOUTH KOREA 83%

TAIWAN 75%

THAILAND 30%

VIETNAM 34%

MARKET INTERNET PENETRATION MARKET INTERNET

PENETRATION

MARKET INTERNET PENETRATION

AUSTRIA 80%

BELGIUM 81%

BULGARIA 51%

CROATIA 71%

CZECHREPUBLIC

73%

DENMARK 90%

ESTONIA 78%

FINLAND 89%

FRANCE 80%

GERMANY 83%

GREECE 53%

MARKET INTERNET PENETRATION

EGYPT 36%

PAKISTAN 15%

SAUDIARABIA 49%

SOUTHAFRICA 17%

UNITEDARABEMIRATES

71%

MARKET INTERNET PENETRATION

CANADA 83%

UNITEDSTATES 78%

COUNTRIES IN THE STUDY

ASIA-PACIFIC

EUROPE

MIDDLE EAST / AFRICA

NORTH AMERICA

LATIN AMERICAEUROPE

HUNGARY 65%

IRELAND 77%

ISRAEL 70%

ITALY 58%

LATVIA 72%

LITHUANIA 65%

NETHERLANDS 93%

NORWAY 97%

POLAND 65%

PORTUGAL 55%

ROMANIA 44%

RUSSIA 48%

SERBIA 56%

SLOVAKIA 79%

SLOVENIA 72%

SPAIN 67%

SWEDEN 93%

SWITZERLAND 82%

TURKEY 46%

UNITED KINGDOM

84%

UKRAINE 34%

ARGENTINA 66%

BRAZIL 46%

CHILE 59%

COLOMBIA 60%

MEXICO 37%

PERU 37%

VENEZUELA 41%

Page 17: Nielsen Q4 2013 Global Consumer Confidence Report

17Copyright © 2014 The Nielsen Company

ABOUT NIELSEN NielsenHoldingsN.V.(NYSE:NLSN)isaglobalinformationand

measurementcompanywithleadingmarketpositionsinmarketing

andconsumerinformation,televisionandothermediameasurement,

onlineintelligenceandmobilemeasurement.Nielsenhasapresencein

approximately100countries,withheadquartersinNewYork,USAand

Diemen,theNetherlands.

Formoreinformation,visitwww.nielsen.com.

Copyright©2014TheNielsenCompany.Allrightsreserved.Nielsenand

theNielsenlogoaretrademarksorregisteredtrademarksofCZT/ACN

Trademarks,L.L.C.Otherproductandservicenamesaretrademarksor

registeredtrademarksoftheirrespectivecompanies.14/7340

ABOUT THE NIELSEN GLOBAL SURVEY TheNielsenGlobalSurveyofConsumerConfidenceandSpending

IntentionswasconductedNovember11–29,2013andpolledmorethan

30,000onlineconsumersin60countriesthroughoutAsia-Pacific,

Europe,LatinAmerica,theMiddleEast,AfricaandNorthAmerica.The

samplehasquotasbasedonageandsexforeachcountrybasedon

theirInternetusers,andisweightedtoberepresentativeofInternet

consumersandhasamaximummarginoferrorof±0.6%.ThisNielsen

surveyisbasedonthebehaviorofrespondentswithonlineaccessonly.

Internetpenetrationratesvarybycountry.Nielsenusesaminimum

reportingstandardof60percentInternetpenetrationor10Monline

populationforsurveyinclusion.TheChinaConsumerConfidenceIndex

iscompiledfromaseparatemixedmethodologysurveyamong3,500

respondentsinChina.TheNielsenGlobalSurvey,whichincludesthe

GlobalConsumerConfidenceIndex,wasestablishedin2005.

Page 18: Nielsen Q4 2013 Global Consumer Confidence Report

18 QUARTER 4 2013 - GLOBAL CONSUMER CONFIDENCE REPORT