Global Consumer Confidence Ticks Up To 50.7
This May's Global Consumer Confidence Index measures in at 50.7, an uptick of 0.4 points over three months and 2.5 points over one year. The index points to positive consumer sentiment globally, although attitudes vary significantly among the 24 countries surveyed. The Consumer Confidence Index reflects the opinion of consumers on the state of their country’s economy and its outlook, their willingness to save or make large investments, and their confidence in personal financial affairs.
Citizens of China (72.3), India (64.7), the United States (63.6), and Sweden (62.1) report the highest levels of overall confidence in their country’s economic situation. In contrast, citizens of Turkey (38.3) and Italy (39.6) display much lower levels of confidence. The country showing the greatest increase in confidence over the past three months is Saudi Arabia (+4.0 points to 57.3) while Mexico shows the steepest decrease (-3.5 points to 44.6) as it gears up for a presidential election in July. Overall, seven countries see a significant increase (1.5 points or more) while just four countries see a significant decrease.
Among the sub-indices making up the Consumer Confidence Index, the Expectations Index sees a three-month increase of 0.5 points to 59.6. Unsurprisingly, two of the strongest, fastest-growing economies come in as the leaders in the Expectations Index. China leads the way with a value of 74.4 (its highest ever recorded over the past eight years), followed by India with an index value of 70 (despite a 1.8-point drop over the past three months). All but one of 24 countries show an Expectations Index value of more than 50, a positive sign for the future direction of economic growth. At 45.7, Turkey is the only exception. Nine countries see a significant increase over the past three months, most notably Hungary (+4.1 to 57.9), Saudi Arabia (+3.2 to 63.4), and Great Britain (+2.2 to 56.6). Of course, economic news is not positive in all markets. In addition to displaying the lowest Expectations Index value, Turkey also sees the largest decrease (by 2.2 points), closely followed by Argentina (-2.1 points to 59.5).
The Jobs Index shows a three-month increase of 1.1 points to 58.5. This index sees a significant increase in 12 countries, compared to just three countries who see significant movement in the other direction. China (74.2), Sweden (73.6), and the United States (72.4) show the highest Jobs Index scores while Brazil (35.6) and Turkey (43.5) show the lowest ones. Hungary (59.4) sees the highest Jobs Index increase (5.3 points), followed by China (+4.1), and Saudi Arabia (+3.9 to 53.1). In contrast, the Jobs Index drops in Mexico (-2.8 points to 46.4), Argentina (-2.6 to 48.2), and Turkey (-1.7).
Lastly, the global Investment Index shows a very slight three-month decrease of 0.2 points to 44.1. In keeping with a pattern, China (70.7) and India (66.3) report the largest values by far, with the United States a somewhat distant third (58.1). Investment confidence is lowest in Japan (28.2), Italy (32.7), Turkey (32.7), and France (32.9). This month, seven countries show significant increases and seven countries show significant decreases. Saudi Arabia (+4.7 to 55.5) and Russia (+ 4.6 to 36.2) have the highest increases. Conversely, Mexico (-6.1 to 41.7), Belgium (-4.2 to 39.1), and France (-4.0 to 32.9) show the largest drops.
