Asian consumers increasingly pessimistic: MasterCard

SINGAPORE: Consumer confidence across the Asia Pacific region has turned increasingly pessimistic and most people plan to cut back on dining and other discretionary expenses, a survey said Wednesday.

Only four of the 14 markets surveyed are optimistic about the first half of next year, the twice-yearly MasterCard Worldwide Index of Consumer Confidence found.

It blamed the souring mood on economic volatility and concerns over a global recession.

The Index of Consumer Confidence, derived from a survey, measures consumer confidence on a scale from zero to 100, with 100 being most optimistic.

MasterCard said only Vietnam, China, India and Singapore were optimistic about the first half of next year.

Confidence fell most heavily in Hong Kong -- to 41.8 from 83.1 six months ago -- and in Taiwan, where the Index fell to 32.1 from 71.3.

The overall index was at 47.4, down from 55.0 in the last survey and 67.3 a year ago but still above the average of 32.3 recorded during Asia's financial crisis of a decade ago, MasterCard said.

"Consumers are also tightening their belts," the company said, reporting that a separate analysis of purchasing priorities found 70 percent of the region's consumers looking to reduce discretionary spending for the next 12 months.

"Consumers across the region are bracing themselves for tougher times ahead in 2009," said Yuwa Hedrick-Wong, Asia-Pacific economic adviser for MasterCard Worldwide.

The company said it surveyed 6,019 consumers during September.

The Index of Consumer Confidence measures consumers' outlook toward employment, the economy, regular income, the stock market and quality of life.