Consumer confidence declined in six of seven Latin American markets measured by Nielsen in the second quarter, with Brazil (81) reporting the steepest quarterly drop of seven index points from three months ago. The decline represents the third consecutive quarter of declines for the region’s largest economy, and the score is the country’s lowest in the history of the Nielsen Global Survey of Consumer Confidence and Spending Intentions, which was established in 2005.
In Brazil, sentiment for the three economic indicators hit new lows, as future job prospects declined four percentage points to 23%, personal finances sentiment decreased four percentage points to 56%, and immediate spending intentions declined nine percentage points to 32%. Nearly all Brazilian respondents believe they are in recession, as the sentiment increased five percentage points to 90% from the first quarter.
“In Brazil, overall consumer perceptions continue to worsen as difficult economic conditions remain in place,” said Luis Arjona, country manager, Nielsen Brazil. “Rising unemployment and a high inflation rate are compounded by a slight GDP decline. While government authorities have adopted fiscal discipline measures, it will take time before economic growth is reignited. Consumers are responding by lowering levels of debt, seeking promotions and shopping at retail formats that offer most competitive prices.”
Peru’s index declined four points to 95, followed by declines of three points each in Chile (to 84) and Venezuela (62). Consumer confidence in Mexico (84) and Colombia (93) declined two and one point, respectively, from the first quarter. Argentina was the only country measured in the region with a confidence boost, rising six points to 81 in the second quarter.
Regionally, the 12-month outlook for good/excellent job prospects declined one percentage points to 26%, personal finances sentiment fell one percentage points to 55%, and immediate spending intentions decreased four percentage points to 32%. Recessionary sentiment grew in the region, rising from 78% to 81% in the second quarter—the highest of all the regions measured in the Nielsen survey.
Other findings include:
- Recessionary sentiment improved in 31 of 60 measured markets from the first quarter.
- European consumer confidence increased two points to an index score of 97.
- Worries about the economy, job security and health issues are top global concerns.
- A closer look at country-level insights within global regions.
- Confidence in Asia-Pacific remained the highest of all regions at an index score of 107.
For more detail and insight, download Nielsen’s Q2 2015 Global Consumer Confidence Report. For a historical look at global consumer confidence by region, country and time period, explore the Nielsen Global Consumer Confidence Trend Tracker. If you would like more detailed country-level data, it is available for sale in the new Consumer Insights section of the Nielsen Store.
About the Nielsen Global Survey
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted May 11-29, 2015 and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.