Global consumer confidence has reached a record low according to Nielsen's biannual index, falling 7 points to 77. Emerging markets like Russia, UAE, and Brazil saw the biggest declines in confidence. Latin America also saw a large drop, while confidence in Europe and Asia Pacific fell slightly less. While most markets experienced declines, Indonesia, Denmark, and India remained the most confident. The US appeared to stabilize after previous large drops. Most consumers believe they are in a recession and are focusing on savings and paying down debt.

1. 1st Half, 2009
Global Consumer
Confidence, Concerns
and Spending
a global Nielsen
consumer report
INSIDE:
Global consumer
confidence at a record low
The emerging markets of
Russia, UAE, and Brazil suffer
the biggest falls
Regionally, Latin America takes
the biggest hit
Indonesians, Danes and Indians the
world’s most confident
77 percent of online consumers think
they are in recession
Job security cited a leading concern
Most spare cash going into savings or paying off
debts and/or loans

2. Nielsen sees consumer confidence plummet in Emerging Markets, with
Russia, UAE and Brazil suffering largest declines in past six months
• No further significant decline in consumer confidence in USA
• Concerns for Job Security soar, ranking one point behind The Economy as the biggest concern in next six months
• China bucks global trend, with 65 percent of Chinese thinking China’s economy not in recession
Global consumer confidence has plummeted to a record new 48 of 49* markets surveyed by Nielsen between 19 March to
low in the past six months, falling seven Index points from 84 2 April 2009 experienced a drop in consumer confidence, with
to 77 according to the latest twice-yearly Nielsen Global 48 of the 50 countries falling below an Index of 100 for the
Consumer Confidence Index which tracks consumer confidence, first time. Indonesia and Denmark were the only markets to
major concerns and spending habits among 25,140 internet remain above 100, with indices of 104 and 102 respectively.
users in 501 countries.
Nielsen Global Consumer Confidence Index
1st half, 2009
160
Changes 1h 09 vs. 2h 08
-6 -10 -15-11 -6 -3 -12 -3 -8 -7 -21 -21 -8 -12 -12 -13 -14 -16 -8 -7 -14 -12 -2 -6 -16 -15 -5 -5 -8 -29 -7 -13 -11 -2 -4 -18 -3 -3 -9 -9 3 -14 -2 -1 -19 -17 -2 -2 -5
140
Changes 2h 08 vs. 1h 08
-10 -8 -8 -20 3 -11 -5 -5 1 1 -1 4 -5 -9 -8 1 -5 -7 2 -9 -3 -10 -1 -2 -5 -6 -9 -13 2 -2 -12 -14 -8 -3 -8 -21 -6 -3 -5 -13 -23 -19 -5 -9 4 -12 -1 -5 -14
120
104
102
100 99 98
96 96
92 91
90 89 89
88 88
85 84
83 83 82
80
81 81 81 80 80
79 79 78 78 78 Global average: 77
76 76 75 75 75
74 73
72
70 70 70
65 64
63 63
60 60
60
52
48 48
42
40
31
20
0
ID
DK
IN
NO
PH
NL
AU
PK
NZ
CN
AE
BR
CO
VN
CA
VE
CH
PL
TH
MY
IL
SG
US
SA
AT
AR
FI
BE
CL
ZA
RU
MX
SE
CZ
DE
ES
HK
GR
IT
GB
EE
TW
IE
TR
FR
HU
LV
PT
JP
KO
1st half 2009 Changes 1st half 2009 vs. 2nd half 2008
50 Markets Covered: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia,Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
1
Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Latvia, Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Russia,
Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, United Kingdom, US, Venezuela and Vietnam.
* Excluding Saudi Arabia which was a new entrant in 1H 2009 update, hence no back data was available to make a comparison.
1

3. Effect of global recession evident as 48 of 49* countries witness a fall in 1H 2009 CCI vs. 2H 2008 CCI
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
-25.0%
-30.0%
R S E L K R T R P T S D H E L T Z Y X K A H B E U A Z G E E H IL FI PL AR IE AE BR K LV U U
TW F U D N P T P G J I E I P B C A N CO CN M M D Z T NO G E A C C VN S KO IN V S C H H R
* Excluding Saudi Arabia which was a new entrant in 1H 2009 update, hence no back data was available to make a comparison.
Nielsen Consumer Confidence Index of 48 countries is below 100 for 1st Half of 2009
Trend of Indices for Countries
60
50
Number of Countries
2
9
17
40 21
19 23 25
14 29
30 25 25
22
20 15
20 8 14
20 27
10 11
17
11 9 12
4 5 8
0 3
1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half
‘05 ‘05 ‘06 ‘06 ‘07 ‘07 ‘08 ‘08 ‘09
Less than 80 Between 80-100 More than 100
2

4. The emerging markets of Russia, UAE, and Brazil suffered the
biggest falls in consumer confidence over the past six months sentiment among Russians
as currency devaluation, weakening export markets and falling
global commodity prices took their toll. The other BRIC2 has taken an aggressive
markets of India and China were not immune either, and while swing downwards
managing to retain their places in the ranking of the top 10
most confident markets globally, both recorded a decline in
consumer confidence of 15 and seven points respectively.
While the effects of the global downturn may not have such Across the BRIC markets2, India, Brazil and
an impact on consumers in the BRIC and Latam countries, Russia all experience double digit drops in
these markets are now experiencing a marked slowdown in consumer confidence
contrast to recent years of boom and growth.
120
Russia suffered the biggest blow to consumer confidence in 114
-15 109
the past six months, according to Nielsen. Confidence 104
99 -21 96
100
plummeted by 29 Index points in Russia – down to 75 points 89
88 -29
from 104 in September ’08 – marking the biggest fall in -7
80 75
consumer confidence tracked by Nielsen globally. The Russian
economy contracted for the first time in a decade and GDP is
60
estimated to fall by 5.6 percent this year.
“Towards the end of last year, Russian consumers took a ‘wait and 40
see’ attitude to the world’s economic woes. Since then, sentiment
among Russians has taken an aggressive swing downwards, with 20
continued depressed oil prices, a devalued currency and a local
slow down taking hold in many sectors a stark reminder of the 0
Russian crisis of 1998,” commented Dwight Watson, Managing IN BR RU CN
Director, The Nielsen Company, Russia. 2nd Half ‘08 1st Half ‘09
Behind Russia, confidence in the key emerging markets of UAE
and Brazil both fell by 21 points.
Latin America takes a hit
Consumer confidence takes a big hit in Latin America
Regionally, Latin America suffered the biggest hit to consumer
confidence, falling 15 Index points (down to 82 points from 97)
120 2nd Half ‘08 1st Half ‘09
while consumer confidence in Europe and Asia Pacific both fell
109
by eight and seven points respectively.
97
100 96 96
Six months ago as developed markets hurtled towards the 94
88
88
epicentre of a global recession, Latin America was the world’s 81 82 83 82
78
most optimistic region according to the Nielsen Index. It hasn’t 80 76 75
taken long for the tentacles of the global recession to reach them.
In the Nielsen survey, consumer confidence in Brazil fell from 60
109 Index points to 88, as the OECD predicts that GDP in
Brazil is expected to decline by 0.3 percent this year. Argentina 40
dropped from 94 to 78 Index points.
Europe remained the world’s most pessimistic region at 67 20
Index points, 10 points below the global average, a clear
indication that economic recovery in Europe will be longer and 0
BR CL MX AR CO VE LA
slower to take effect. Within Europe, after Russia, consumer
confidence in Hungary suffered the biggest fall (19 Index
points), followed by Latvia (-17 points) and Finland (-15 points).
2
Brazil, Russia, India and China
3

5. Europe: Consumer Confidence Index drops a further eight points
120
112
109
104
102
99 98 98
100 93
96 97
88
85 83 85
82 83 81
79 78 78
80 75 77
73 73
76
75 74 74 73
75
76 75
72 71 73
70 70
67
63
65
62 64 65
61 60
60 2nd Half ‘08
% 60
50
52 1st Half ‘09
48 48
40
20
0 AT BE DK FI FR DE IE IT NL NO PL PT ES SE CH GB CZ HU GR RU TR EE LV LT RO IL EU
Base : All respondents n=12037
Across Asia Pacific, the Consumer Confidence Index matched the global average
120 114
110
104 104
102
99 98
100 96 96 97
92 92
89 88 88 90 89
85 84
81 80 81
80 77
70
63 2nd Half ‘08
60
% 60 1st Half ‘09
44
42
40 36
31
20
0 AU CN HK IN ID JP KO MY NZ PH SG TW TH VN AP
Base : All respondents n=7072
4

6. Indonesians, Danes and Indians the world’s most
confident
Indonesia topped Nielsen’s Global Consumer Confidence Index In the last six months, consumer confidence in the regions of
at 104 points, followed by Denmark (102 points) and India (99 Middle East/Africa and North America both declined by two
points). The world’s most pessimistic nations in the Nielsen and three Index points respectively. However, no significant
Index are South Korea (31 points), followed by Japan at 42 points, further decline in North American consumer confidence may
and Portugal and Latvia at 48 points. Taiwan, the only country to signal the first cautious signs of hope that the recession is
buck the global trend, edged up three Index points from 60 to 63, finally bottoming out.
although remains 14 points below the global average.
A downward trend that started towards the end of 2006
The twice yearly Nielsen Consumer Confidence Index has been “Our results indicate that we may be at, or at least very near, a
tracking downwards since the second half of 2006, dropping bottom in this economic cycle. Specifically in the United States,
five points from 99 (2nd half 2006), to 94 (2nd half 2007), and while clearly adjusting their spending and savings with 40
a further 10 points in 2008, to an Index of 84. A decline of percent stating they are paying off debts and putting into
seven points is the largest single drop seen yet, and brings the savings, American consumers are increasingly optimistic about a
Nielsen Confidence Index to its lowest since the Index was first light at the end of the tunnel, with close to 20 percent seeing a
established by The Nielsen Company in 2005. recovery in the next 12 months,” commented James Russo, Vice
President, Consumer Insights, The Nielsen Company.
The US, which experienced its biggest decline between 2nd
half 2007 and 1st half 2008 when it fell 17 Index points to 83 “While the US is still below the global average of 23 percent who
from 100 – appears to have leveled out – dropping as few as see a recovery coming in the next 12 months, it is an increase on
three Index points in the past 12 months to settle at 80. our October 2008 results. The Nielsen Consumer Confidence
Consumer confidence in the US – the world’s biggest economy data becomes yet another data point - along with retail sales
- now sits above the global Nielsen average of 77, which must gains in Jan and Feb, stock market advances in March, improving
be good news for everyone. housing conditions and loosening up of the credit market - to
show we may have turned a corner. Critical to a recovery is a
change in sentiment, and there is evidence to support this trend
as companies plan for a recovery,” added Russo.
Global Consumer confidence continues to slide, dropping a record seven points, although US levels out
110 108
106
105
100
100 99
97 98
95 96
94
90 88 89
83 84
80 82 80
77
The US appears to
70 have leveled out
60
2nd Half ‘06 1st Half ‘07 2nd Half ‘07 1st Half ‘08 2nd Half ‘08 1st Half ‘09
Global Average US China
5

7. The recession is official
According to the Nielsen survey, 77 percent of online consumers
think their economy is in recession, up from 63 percent who Do you think your country is in an economic
thought so six months ago. Consumers experienced a grim end recession at the moment? Top 10 No
to 2008 and braced themselves for a tough first half of 2009,
which is what they are getting. The one exception globally is 70 65
China where 65 percent of internet consumers thought their
economy not currently in a recession. 60
“The Central Government’s stimulus package of US$585 billion 50
equates to 13.3 percent of GDP and is an enormous shot in the 43
arm for Chinese Consumer confidence,” said Chris Morley, 40 35
%
Managing Director, The Nielsen Company, China. 31 30
30 28 28 27 26 26
“While China’s economy has undoubtedly slowed, February retail
sales are still 15 percent up on last year and many Chinese 20
consumers now believe the next 12 months could be a good time
10
to go back to investing in stocks and property. Chinese consumers
are also maintaining their love affair with travel during the 0
economic slowdown and top the list of markets surveyed by CN SA CL AU PL IN DK ID HK CZ
Nielsen when it comes to their intention to spend spare cash on
travel,” added Morley. Base: All respondents n=25140
Among global online consumers who believe they’re currently
in recession, 52 percent said they were bracing themselves for
a global recession to last 12 months or longer, indicating that
one in two consumers aren’t expecting a quick rebound.
6

8. Do you think your country is in an economic recession at the moment?
April 2009, Global Recession Widens, Asia Pacific Marginally Less Affected
0% to 25%
25% to 50%
50% to 75%
Source: Global Online Consumer Omnibus Apr 2009:
75% to 100%
25,140+ respondents globally
Do you think your country will be out of an economic recession in the next 12 months?
Recession Casts A Gloomy Outlook
0% to 15%
15% to 30% Global Average: 23%
30% to 45%
Source: Nielsen Global Online Consumer Omnibus Apr 2009:
25,140+ respondents globally
7

9. Not everyone is prepared to suffer a prolonged recession
however – some consumers are already planning their post- Do you think your country will be out of an economic
recession party. Among current recessionistas, nearly one in recession in the next 12 months? Top 10 Yes
five (23%) online consumers believes their country will be out
of recession within the next 12 months, spearheaded by the 70
Vietnamese (60%) and Indians (56%). Two in five Danish and 60
Dutch consumers also believe they’ll be out of recession within 60
56
a year, along with one in three Norwegians, Chinese, Swedes
and UAE consumers. 50
40
Unemployment fears very real 40
39
34
% 32 32 32
At the same time as global consumer confidence plummeted 31 30 30
to new lows, fears of unemployment and job uncertainly 30
reached new heights. Job security was cited as one of the
leading concerns among internet consumers in 31 of 50 20
countries surveyed by Nielsen.
10
Global concern for job security jumped from nine to 22
percent globally since the October survey, ranking it only one
percentage point behind ‘The Economy’ as the biggest concern 0
VN IN DK NL NO CN SE AE ID AT IL
globally. Among other growing concerns since the last Nielsen
survey were increasing food prices and utility bills. Six months Base: Those who thought they were currently in recession
ago, global consumers cited the economy and work/life
balance as their two top concerns in life - but consumers’
priorities have rapidly changed along with the economic
deterioration.
Biggest concern over the next six months
Global Average
20
The economy 23
9
Job security 22
10
Work/life balance 8
6
Debt 7
8
Health 6
6
Childrens education and/or welfare 5
9 2h 2008
Increasing food prices 5
8 1h 2009
Increasing utility bills (electricity, gas, heating, etc) 5
3
Parents welfare and happiness 3
2
Global warming 2
Crime 2
2
3
Political stability 2
5
Increasing fuel prices 2
Terrorism 2
1
War 1
1
Immigration 1
1
Other concern 3
3
No concerns 2
2
Base: All respondents n=25140
8

10. Consumers who cited job security as their biggest concern in
life today include UAE and Vietnam (36%), Spain (34%), Hong How using spare cash after covering essential living
Kong (33%), Singapore (32%) and Hungary (31%). expenses
Uncertainty in the labour force also remains a worry for the Global Average
near future. Three quarters (76%) of consumers felt job
prospects in their country over the next 12 months would be Putting into savings 46
48
either not so good (50%) or downright bad (26%). Seventy- Paying off debts/ 30
32
credit cards/loans
eight percent of Latvians said job prospects were bad for the Holidays/vacations 34
31
next 12 months, along with 74 percent of Koreans, 60 percent New clothes 32
of Japanese and 42 percent of British consumers. 28
28
Out of home entertainment
25
2h 2008
Home improvements/ 25
%
decorating 22 1h 2009
Major Concerns - Job Security New technology products 21
25
Top 10 Investing in shares of stock/ 20
mutual funds 18
12
I have no spare cash 13
10
Biggest concern Second biggest concern Retirement fund 10
60
Base: All respondents n=25140
14
40 17 15 14 11 16 17 15 15 14
%
20 36
How using spare cash after covering essential living
36 32 33 34 31 29 30 29 30 expenses
Top 10 Paying off debts/credit cards/loans
0
AE SG HK ES VN HU LV PH IN CL
60 56
Base: All respondents n=25140 51 49 47 47
45 44 42 41 41
40
All spare cash going into savings %
As interest rates continue to fall, consumers appear to be less 20
concerned with paying off their debts and more interested in
bolstering their savings accounts. Nearly half (48%) of global
consumers said they were putting any spare cash they had into 0
savings while 32 percent were using spare cash to pay off MX CO VE CL CA ZA TR AU MY HU
debts, credit cards and/or loans, up from 30 percent in
Base: All respondents n=25140
October 2008. Latin Americans seem particularly keen to pay
down debt, with around half of Mexicans (56%), Colombians
(51%), Venezuelans (49%) and Chileans (47%) opting to
reduce their exposure during the current downturn. Nine of the
top 10 markets putting their money into savings hailed from
the Asia Pacific region.
9

11. What actions have you taken to save on household
How using spare cash after covering essential living expenses? (All Respondents)
expenses
Top 10 Putting into Savings Spend less on new clothes 56%
Cut down on out-of-home entertainment 53%
80 75 74 Try to save on gas and electricity 51%
69 69 67 66 65 Cut down on take-away meals 45%
63
59 59
60 Switch to cheaper grocery brands 41%
Delay upgrading technology, eg. PC, Mobile, etc 39%
Cut down on telephone expenses 34%
% 40
Cut down on holidays / short breaks 34%
Delay the replacement of major household items 34%
20 Use my car less often 29%
Cut out annual vacation 23%
Cut down on at-home entertainment 22%
0
SG HK MY PH ID IN TW AE CN JP Look for better deals on home loans, insurance, 22%
credit cards, etc
Base: All respondents n=25140 Cut down on or buy cheaper brands of alcohol 17%
I have taken other actions not listed above 13%
Cut down on smoking 12%
Changing spending habits to make ends meet
To save on household expenses, 70 percent of consumers have When economic conditions improve, what will you
changed their spending habits. The biggest casualties of this continue to save on? (All Respondents)
new-found thrift for over half of all consumers are new
clothes, out of home entertainment and gas and electricity Try to save on gas and electricity 40%
bills. The only one of these new habits consumers felt they Cut down on take-away meals 24%
were likely to maintain once the economic crisis had passed
was saving on utility bills, where four in 10 said they would Spend less on new clothes 22%
continue to try and save in this area. Switch to cheaper grocery brands 21%
Cut down on telephone expenses 21%
Cut down on out-of-home entertainment 20%
Use my car less often 17%
Look for better deals on home loans, insurance, 16%
credit cards, etc
Other actions not listed above 16%
Delay upgrading technology, eg. PC, Mobile, etc 14%
Cut down on holidays / short breaks 11%
Delay the replacement of major household items 10%
Cut down on smoking 9%
Cut down on at-home entertainment 8%
Cut down on or buy cheaper brands of alcohol 8%
Cut out annual vacation 7%
None 7%
10

12. Country Abbreviations
AE United Arab Emirates IN India
AR Argentina IT Italy
AT Austria JP Japan
AU Australia KO South Korea
BE Belgium LV Latvia
BR Brazil MX Mexico
CA Canada MY Malaysia
CH Switzerland NL Netherlands
CL Chile NO Norway
CN China NZ New Zealand
CO Colombia PH Philippines
CZ Czech Republic PK Pakistan
DE Germany PL Poland
DK Denmark PT Portugal
EE Estonia RU Russia
ES Spain SA Saudi Arabia
FI Finland SE Sweden
FR France SG Singapore
GB United Kingdom TH Thailand
GR Greece TR Turkey
HK Hong Kong TW Taiwan
HU Hungary US United States
ID Indonesia VE Venezuela
IE Ireland VN Vietnam
IL Israel ZA South Africa
The Nielsen Global Online Consumer Survey
A twice-yearly online study, the Nielsen Online Global Consumer Confidence survey polled 25,140 consumers in 50 markets in
Europe, Asia Pacific, North America and the Middle East from March 19 to April 2, 2009 about their confidence levels and economic
outlook. The Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their
personal finances and readiness to spend.
The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer
information, television and other media measurement, online intelligence, mobile measurement, trade shows and business
publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with
headquarters in New York, USA. For more information, please visit, www.nielsen.com
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