MUST survey finds local consumers losing confidence in spending

Macau consumers showed less confidence spending on commodities in the fourth quarter of last year, according to a study by the Macau University of Science and Technology (MUST).

The score for the Consumer Confidence Index (CCI) in Q4 is 75.75 out of 200, with 200 being completely confident and zero indicating a complete lack of confidence. The passing benchmark is set at 100, a lower score indicating insufficient consumer confidence.

The 2021 Q4 index was lower than that of the preceeding quarter by 6.66 points or 8.08%.

All six criteria considered in the calculation recorded a decrease in score. The six criteria are: local economy, employment conditions, stock investment, standard of living, price levels and property purchases.

The score for the local economy criterion recorded the steepest fall, which was 12.51%. The remaining scores recorded falls of 10.55%, 8.84%, 6.59%, 6.25% and 3.52% respectively.

The MUST researchers interviewed 706 respondents, all aged 18 years or older, from December 3 to 27. The CCI reflects an individual’s view on the prosperity of the economy during the relevant quarter. It has been used to for economic projections and to predict consumption trends.

Explaining the CCI for Q4, MUST researchers pointed out that the index could not continue its rising trajectory from the previous quarter.

They hinted that the instability of the current pandemic was the bad news, amid some good news regarding the intensive cooperation zone in Hengqin and the recovery of the mainland economy.

In terms of CCI, last year opened low at 75.13 with a further drop in the second quarter to 68.11. Perceptions of the economy then warmed up to reach a CCI of 82.41.

The study is a regular project conducted by MUST, in collaboration with four higher education institutions in mainland China, Hong Kong and Taiwan. The first study was conducted in Q4 of 2008.