Consumer confidence for Asia-Pacific declines slightly in Q2 2021, but differences across regional markets were pronounced

Consumer confidence for Asia-Pacific declined slightly in the second quarter of 2021, according to The Conference Board® Global Consumer Confidence Survey, largely driven by India and Taiwan, which both saw big declines across all three drivers of confidence: jobs, financial prospects, and spending intentions. Both markets experienced a significant surge in COVID-19 infection rates in Q2.

The survey found that consumer confidence for Asia-Pacific declined to 115 in the second quarter of 2021, down from 118 in the first quarter. However, differences across markets in the region were quite pronounced. China had an all-time high reading (since the survey began in 2005) of 130, up 9 points from Q1, although other data suggests the level of confidence among Chinese consumers might be overstated given less optimistic reports on employment, retail sales, and household saving.

By contrast, confidence levels in India plummeted by 26 points to 112, the largest drop of any market. This was followed by Taiwan, where confidence dropped by 16 points to 85, down from 101 recorded in Q1. Other markets with notable declines in consumer confidence included Singapore (down 7 points, from 96 to 89), Malaysia (down 5 points, from 105 to 100), and the Philippines (down 4 points, from 119 to 115). Consumer sentiment about job prospects and personal finances deteriorated substantially in these five markets. Much of this can likely be attributed to COVID-19 surges: India, Taiwan, and Malaysia all experienced second-wave increases, concentrated in May, while Singapore and the Philippines had a surge in new cases peak around April.

For more information on the results of our Q2 2021 Global Consumer Confidence Survey, please visit our website.