Macau’s Consumer Confidence Index continued to drop in the first quarter of this year to a total score of 74.48, down 1.27 points (1.68%) compared to the previous quarter (75.75), according to a study by the Macau University of Science and Technology (MUST).
The survey shows that compared to the previous quarter, the Employment Situation sub-index declined by 3.95% from the previous quarter (70.18) to 67.41; while the Local Economy sub-index was 72.31, down 2.55% from the previous quarter (74.20).
MUST explained that the decline is due to the Covid-19 pandemic, escalating international geopolitical conflicts, increasing complexity and uncertainty of the external environment, increasing frequency of Covid-19 outbreaks in the mainland, and economic development facing triple pressure of shrinking demand.
“In the short term, changes in the epidemic are still the most direct, unstable and uncertain factors facing the Macau economy. It is necessary to proactively respond, stabilize domestic demand, restore economic resilience and boost confidence,” the university said in a statement.
“Moreover, [it is necessary to] coordinate short-term responses and medium and long-term development, guide the transition of the industrial structure to one diversified around moderate economic diversification and deep regional cooperation, maintain stability, continuity and sustainability, manage market expectations scientifically and promote consumer confidence,” the study suggested.
The Price Level sub-index declined the most to 71.12 this quarter, down 4.65% from the previous quarter (74.59), the Investment in Stocks sub-index was 73.92, down 2.78% from the last quarter (76.03); while the Living Standard sub-index is 84.42, down 0.92% from the previous quarter (85.20).
The Property Purchase sub-index was at 77.72, up 4.57% from the previous quarter (74.32).
Consumer Confidence Index is a composite indicator that quantifies consumers’ perceptions of the strength or weakness of the current economic situation.
According to the design, the index score ranges from 0 to 200, where 0 means no confidence at all, 100 means average, no feeling, and 200 means completely confident.
