THEY SEE THEIR OWN FINANCIALS IN THE HIGHEST RATIO OF THE OPTIMIST
Terrorism and immigration were among the biggest concerns worldwide in the fourth quarter”As consumer confidence grows, so will the growth in retail.” Ágnes Szűcs-Villányi, Head of Nielsen
Budapest, February 2, 2016 – The consumer confidence index in Hungary rose again: 63 points in the fourth quarter, two more than in the third quarter. Thus, we belong to the twenty-six countries where the indicator has risen, while in the other thirty-five countries studied it has remained unchanged or decreased. Among other things, this is stated in a global study by Nielsen, a company that provides consumer information and knowledge.
Compared to the first quarter of last year, the index in Hungary increased remarkably by 63 points to 63 in the fourth quarter.
If we look at the three components of the index, the highest proportion of Hungarians is optimistic about the material ones; 27 per cent of respondents see their personal financial situation as more or less good in the twelve months following the survey. Their share is three percentage points higher than in the third quarter.
Also, three percentage points more consider job prospects to be more or less good from one quarter to the next; namely 17 percent of Hungarian respondents.
Hungarians have seen an increase in their willingness to buy before, which has now stopped A similar proportion of respondents in the third quarter, 21 per cent, consider the current period to be sufficient to buy what they need; taking into account prices and their own financial means.
“When consumer confidence grows, it is usually reflected in the growth of the food retail business,” says Ágnes Szűcs-Villányi, head of Nielsen. – “In terms of volume, the turnover in Hungary started to decrease from quarter to quarter for six years in 2008, then it started to increase again only in 2014, and since then the favorable trend has been continuous. Moreover, the revenue growth rate of Hungarian grocery stores has been among the top three in Europe in the last six quarters ”.
Looking at the regions of the world, a positive trend in consumer confidence in Europe alone is the first quarter average compared to the fourth: on our continent, the average was 81 points after 77 points. The average for Asia-Oceania remains unchanged 107. The other regions ended the year with less average confidence than they had started. Thus, overall, the 97 global index of the sixty-one countries surveyed was two points lower than in the third quarter and the same as at the beginning of the year.
Among the largest economies in the world, the fourth quarter indices are 107 in China, 101 in the United Kingdom, 100 in the United States, 98 in Germany and 79 in Japan.
“Last year’s differences in confidence levels reflect the many different ways in which consumers perceive economic developments in their own regions and globally,” says Louise Keely, senior vice president of Nielsen, president of the Demand Institute for Research on Changes in Consumer Demand. “Many emerging markets are growing slowly, although not all of them, and trust trends are different accordingly. Overall, European consumers have remained relatively resilient, despite continued economic uncertainty. At the same time, the US is a relatively bright point in the world economy, where consumers are cautiously optimistic about the near future. ”
People’s worries also affect their willingness to shop. For example, the proportion of consumers who see terrorism as their first or second biggest concern has reached an unprecedented high in North America and Europe; 27 and 22 percent, respectively. These figures are higher in both regions than in the case of economic concerns. .
In Hungary, the first or second main concern of 13 percent of respondents is terrorism. That number is seven percentage points higher than in the third quarter. Of the countries surveyed, Turkey stands out at 56% in the fourth quarter; in terms of growth, Israel (43% + 24 percentage points compared to the third quarter), the United Kingdom (32% +11 points) and the US (29% +15 points).
Immigration was mentioned as a first or second major concern by respondents from the Central and Scandinavian countries concerned, in addition to the US. Their share in the US (32% + 26 percentage points compared to the third quarter). In Europe, the Czech Republic (36%), Sweden (28%), Germany (27%), Austria and Norway (26-26%), Switzerland (22%) and Finland (21%) are noteworthy due to the high proportion of respondents. These indicators generally indicate a significant increase.
In Hungary, the trend is reversed. In the third quarter, more people in the third quarter were worried about job security (27%) than about immigration (21%). However, in the last quarter, immigration fell behind in fourth place in the latest ranking of major concerns, with a mention of 18 per cent. In addition to debt (22%), it is preceded by job security (21%) and health (20%).
“Consumer concerns about terrorism and immigration have increased in the countries most affected by related events recently,” says Louise Keely. “We continue to monitor the potential impact of these demographic and political phenomena on consumer purchases. In general, significant and unexpected events can do the most harm to consumers. ”
On average, more than half of the respondents worldwide (55%) see their own country in an economic crisis, on average 64 per cent in Europe and 67 per cent in Hungary.
Countries where more than 90 percent of respondents say their country is in economic crisis include Venezuela (96%), Ukraine (95%), and Brazil (93%). The lowest rates are below 40 percent in China (29%), the Czech Republic (33%), Denmark (34%), New Zealand (37%) and Germany (38%).
Methodology
Nielsen’s global survey of consumer confidence is conducted online. While the online method allows for a global reach in addition to the huge dimension of topics, it only provides insight into the perspectives and habits of Internet users, not the entire population.
In emerging markets, where internet penetration is still increasing, the camp of young users is larger and its members more affluent than the average population of the country on average. In three sub-Saharan African countries (Kenya, Nigeria and Ghana), a mobile research method was used. Thus, the results there are not included in either the global or the Middle East / Africa region average, which is included in this Communication. In addition, the responses to the survey are behavioral statements rather than accurately measured data. Cultural differences also play a role in the performance of individual countries. These differences are not taken into account in the revealed results. It is therefore advisable to be careful when comparing the results of individual countries and regions, especially with regard to regions.
About Nielsen
Nielsen Holdings Inc. (listed on the New York Stock Exchange: NLSN) is a global performance optimization company that comprehensively understands what consumers are looking at and buying. Nielsen’s watch segment provides metering services to media and advertising customers for all devices on which they consume content (video, audio, text). The buy segment offers packaged food manufacturers and traders a unique global overview of the industry based on retail performance measurement. By integrating viewing and purchasing information, as well as other data sources, Nielsen provides its customers with world-class measurement data and analysis to help them improve their performance. Nielsen is listed in the U.S. list of 500 financial services firm Standard & Poor’s, from which the U.S. stock index is calculated. Its operations cover more than 90 percent of the world’s population in more than a hundred countries. For more information, please visit our website: www.nielsen.com
