Currency

Nielsen Sees 2Q Drop in Consumer Confidence

7/22/2011 01:15:32 PM

Consumer confidence in the U.S. fell in the second quarter to stand lower than it did at the bottom of the recession, Nielsen says.

Nielsen found that 31% of U.S. consumers said they have no spare case for discretionary spending. Overall, U.S. consumer confidence fell five index points to 78. It registered 80 in the second [quarter?] of 2009.

Possible weakness in consumer spending comes while the media industry continues to recover, with both the upfront and scatter markets for advertising remaining strong.

Nielsen’s Global Online Consumer Confidence Study found that worldwide confidence declined to its lowest level in six quarters. Global consumer confidence registered an 89, with 58% of the consumers surved saying they are still in a recession. More than half believe they will still be in a recession in a year.

“There wasn’t enough positive news to inspire confidence among global online consumers in the second quarter,” said Dr. Venkatesh Bala, Chief Economist at The Cambridge Group, a part of Nielsen.

 ”Weak economic figures, slowing manufacturing performance and inflation in Asia, an intensifying debt crisis in Europe and continuing political instability in the Middle East combined with rising household expenses in the U.S. have taken their toll on consumers’ fragile confidence. Hopes for full global recovery in the next 12 months substantially weakened in Q2 as the majority of consumers around the world remained in a recessionary mindset,” Bala said

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