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Consumer confidence in Asia dips – Myanmar is most optimistic, Australia is gloomiest

Consumer confidence in Asia: MasterCardConsumer confidence in Asia Pacific fell overall in the second half of 2014, according to a rolling survey by credit card firm MasterCard.

Ten out of 16 markets surveyed were either flat or showed declines in confidence, with the biggest tumbles in Taiwan, Japan and Hong Kong.

Though emerging markets are optimistic about the economy, job and income prospects and quality of life, consumers in APAC’s most developed countries are relatively troubled.

Consumer confidence in Australia, which according to the study is APAC’s gloomiest consumer market, fell to a level not seen since the financial crisis in the first half of 2009.

The biggest rise in consumer confidence by far came in Bangladesh, followed by the Philippines. The biggest falls were in Taiwan, then Japan and Hong Kong, with confidence also down in New Zealand and Malaysia.

Myanmar, India and Indonesia remain Asia Pacific region’s most optimistic group of markets. The second most optimistic group is Bangladesh, Vietnam and Thailand.

The overall decline comes after Asia recorded the highest consumer confidence score in more than a decade in the previous survey for the first half of 2014.

“The slight drop in Asia Pacific’s consumer confidence reflects an outlook of cautious optimism,” said Pierre Burret, head of delivery, quality and resource management for Europe, Asia Pacific, Middle East and Africa, MasterCard Advisors.

“Consumers across the region are holding their breath for signs of sustained economic growth and opportunity. Emerging markets Myanmar, India and Indonesia are the most optimistic because of either positive anticipation for a brighter future or excitement around their respective newly-minted governments.”

By contrast, the developed markets of Northeast Asia, namely Taiwan, Japan and Hong Kong were much less optimistic in their outlook, he added. “In these markets, the wanted signs of long-term growth and opportunity are blocked by Hong Kong’s recent political crisis and Japan’s weakening yen.”

MasterCard’s Index is based on a survey that ran between October and November last year involving 8,235 respondents aged 18 – 64 in 16 countries across the region. This is the 44th time the survey has ran, dating back to 1993.

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