Consumer Confidence Index shows positive sign in July

Consumer Confidence Index shows positive sign in July

The ANZ-Roy Morgan Vietnam Consumer Confidence Index posted another strong gain, increasing by 3.1 points to reach 134.1 in July, to stand well above the 2014 average of 131, ANZ Bank economists said in a report dated July 30.

In terms of personal finances, 34 percent (up 2 percent) of the Vietnamese people say that their families are “better off” than a year ago, while 19 percent (down 1 percent) say that their families are “worse off“.

About 55 percent (up 7 percent) expect their families to be “better off” financially this time next year, compared to 6 percent (down 2 percent) who expect their families to be “worse off”.

As much as 61 percent (up 4 percent) of the Vietnamese people expect Vietnam to have “good times” economically over the next five years, compared to 7 percent (down 4 percent) who expect “bad times“.

However, 47 percent (down 2 percent) expect the country will have “good times” financially during the next twelve months, while 15 percent (down 1 percent) expect “bad times”.

Thirty-seven percent (down 1 percent) of the Vietnamese people say now is a “good time to buy” major household items, compared to 17 percent (up 3 percent) who say it is a “bad time to buy“.

“We believe the economic backdrop will be one of sure-and-steady recovery, rather than a V-shaped rebound,” said Glenn Maguire, the chief economist of ANZ in Asia-Pacific.

Consumer confidence sitting above the 2014 average is aligned with Vietnam’s ongoing economic momentum. However, further strong gains in confidence will need to be propelled either via wealth effects from higher equity and gold prices, or a faster improvement in the economy.

“We would now assess confidence as being more likely to move sideways at elevated levels rather than continue to make strong gains,” said Glenn.

The ANZ Bank and Roy Morgan Research launched the monthly private consumer index for Vietnam earlier this month, with surveys covering major cities and provinces across the nation.

The consumer index jumped 7.7 points in June.-VNA

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