Consumer Spending Drops, Tech And Entertainment Hit Hard
A slight decline in global consumer confidence data could be a concern to marketers and media platforms.
Nielsen says global consumer confidence declined three index points
to 91 in the second quarter of 2012 -- with the finger pointed at a worsening euro zone crisis, lackluster U.S. job growth and China’s downward GDP revision for 2012.
What Nielsen
says is "intended discretionary spending and saving" decreased globally in the second quarter this year across all sectors reviewed. It says the biggest losers were expected spending on new technology
products, which sank five percentage points to 23%; out-of-home entertainment, slipping four points to 28%; and holidays/vacations, off three points to 30%.
An even bigger issue is the
intention to save money, which has dropped to 47% from 50% in the first quarter of 2012. Specific investing in stocks and mutual funds slipped 4 percentage points to 19%, and 4 points in overall
retirement savings to 9%.
Looking at specific territories shows Asia-Pacific sinking to 100 consumer confidence index, a loss of three points; North America down four points to an 88
number; and Latin America off two points to 96. Among those that are improving, Europe and the Middle East/Africa climbed slightly, just one point each to a 73 and a 98 index.
Confidence
numbers declined in 26 of 56 markets, increased in 23, and remained flat in seven.
Dr. Venkatesh Bala, chief economist at The Cambridge Group, a part of Nielsen, stated: “As
renewed volatility entered global markets, consumers reacted by reining in spending and consumption intentions.”
What little money consumers do have left is earmarked for saving on
expenses and changing buying habits. More than two-thirds (67%) say they will make spending and saving changes. Also, more than half (57%) say they are in recession and half of those believe it will
continue for another year.
Recent MediaDailyNews Articles
-
Aereo Is Not Just For Cord-Cutters May 23, 6:34 p.m.
Are cord-cutters most likely to subscribe to Aereo? Not necessarily, according to early returns. CEO Chet ... -
Cars.com Drops Flag On NASCAR.com Sponsorship May 23, 6:25 p.m.
Cars.com has a need for speed. The site has a deal with Turner to sponsor a ... -
Worldwide Pay TV On The Rise, Big Growth In Asia May 23, 4:17 p.m.
North American pay TV subscribers may continue to show little or no growth for the first ... -
Activision Blizzard's Campaign Wins Grand Effie May 23, 4:12 p.m.
Videogame marketer Activision Blizzards’ ad campaign “The Vet and the nOOb” for Call of Duty: Modern ... -
Mag Bag: Bonnier, Source Interlink Swap Mags May 23, 4:09 p.m.
Enthusiast publisher Bonnier Corp. continued wheeling and dealing this week with the purchase of a biker ... -
Madison Avenue Is Mad As Hell, March Mad: Takes More, Not Less Network TV May 23, 7:46 a.m.
Demand for network TV advertising, which had been lagging so far this year, surged in April ... -
NY1 Show Goes National May 22, 7:32 p.m.
Time Warner Cable (TWC) will begin distributing a show about Broadway and theater at large to ... -
TV Model: Nets, Stations Split Retrans 50/50 May 22, 6:02 p.m.
Gray Television CFO Jim Ryan suggested that networks may capture more than half of an affiliate’s ... -
Newspaper, Magazine Ad Fortunes Continue To Decline May 22, 5:59 p.m.
The release of fourth-quarter figures for newspaper advertising and first-quarter figures for magazine ad pages earlier ... -
Equifax Taps Dentsu's 360i As Lead Agency May 22, 5:24 p.m.
Data collection company Equifax has selected Dentsu shop 360i to be its lead agency -- for ...
Be the first to comment on "Consumer Spending Drops, Tech And Entertainment Hit Hard"
Leave a Comment