Global Consumer Confidence

Global Consumer Confidence The Conference Board Global Consumer Confidence Survey is conducted in collaboration with Nielsen 2nd QUARTER RESULTS CONTENTS Global Highlights Asia-Pacific Africa and the Middle East Latin America North America Europe

BACK TO CONTENTS PAGE Global Highlights Global Consumer Confidence Moves Downward for First Time in Two Years GLOBAL CONSUMER CONFIDENCE INDEX, : 104 GLOBAL CONSUMER CONFIDENCE INDEX : 104 Norway 92 ussia 70 Thailand South Korea 56 Taiwan 76 Japan 83 Philippines 127 Canada 56 127 US 123 Mexico 96 Venezuela Colombia67 101 Brazil 81 Chile 91 Argentina 76 Sweden 99 UK Germany 101 107 France 78 Italy Spain 62 Greece 92 67Israel Morocco 70 South Africa 90 UAE 116 Saudi Arabia 107 Russia 70 Kazakhstan 84 India 124 China 113 South Korea 56 Taiwan Vietnam 76 120 Thailand Indonesia 127 Japan 83 Philippines 127 Australia 93 New Zealand Canada US 123 Mexico 96 Brazil 81 Chile 91 Argentina 76 Confidence across the globe The Conference Board Global Consumer Confidence Index declined by 2 points in the second quarter of to 104 from 106 in the first quarter. This is the first time the index has declined in two and a half years. Globally, optimism about job prospects, personal finances and intentions to spend have somewhat declined compared to the previous quarter, albeit there is large variation across countries. Global Consumer Confidence Index 104 106-2 North America 121 121 0 Asia-Pacific 112 115-3 Africa & The Middle East 93 91 2 Europe 87 86 1 Latin America 86 88-2 While the biggest concern for consumers globally over the next six months is the economy, it is closely followed by concerns about personal health and job security. The ongoing trade and tariff war is likely to affect consumer sentiments in several economies, including the US, Canada, China, and Mexico. Confidence across regions Asia-Pacific The decline in confidence was most visible in the Asia-Pacific region, with 11 of the 14 countries showing a decline except Malaysia, Australia, and Indonesia. Still, six Asian economies (China, India, Indonesia, Malaysia, Philippines, and Vietnam) are in the top-10 countries with the highest confidence levels in the world. Latin America Confidence that was already relatively low, declined, driven by large declines in Argentina and Brazil. 2 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

Global Highlights Europe Despite the global drop, confidence still increased in 34 countries, of which 24 are located in the broadly defined European region. But three of the largest economies in Europe showed a modest decline (France, Germany and Italy). North America Confidence was unchanged between the first and second quarters. The level for the United States remained the 4 th highest in the world. Middle East & Africa Confidence was slightly up, primarily driven by a large increase in Saudi Arabia. A moderation in consumer optimism The Conference Board Global Consumer Confidence Index ( TCB Global CCI ) declined by 2 points in the second quarter of and is back to its 2017 level. While this is the first time the index has declined in two and a half years, the overall index remains in optimistic territory. Generally, a reading of above 100 is considered positive. The moderation in optimism among consumers correlates with the performance of the global economy, which is not expected to accelerate in. The May update of The Conference Board Global Economic Outlook projects global GDP to grow at 3.2 percent this year, the same rate as last year, with both emerging markets and mature economies seeing no uptick in growth. The decline in global confidence was driven by consumers in both mature and emerging markets. Asia-Pacific was the most dominant driver of the decline, followed by Latin America. In Asia-Pacific, the overwhelming majority of countries experienced a loss of confidence. Latin America s decline was less concentrated across countries, with half experiencing a moderate decline. Globally, consumers were less enthusiastic about job prospects, their personal financial situation, and their spending intentions than last quarter. North America, despite a slight decline in Canada, managed to maintain the region s confidence level, while both Europe, Africa, and the Middle East posted small increases. Most European economies continued to show improvements in consumer confidence, although some modest declines were noted in large economies such as France, Germany, and Italy. In Africa and the Middle East, the majority of countries saw an increase in confidence. Globally, consumers were less enthusiastic about job prospects, their personal financial situation, and their spending intentions than last quarter. However, sentiment regarding job and financial prospects remains positive, whereas sentiment regarding spending does not. Looking ahead, if consumers become apprehensive about job prospects, sentiment regarding their financial well-being will be impacted, and their spending intentions could further worsen. This, in turn, may cause consumers to more carefully weigh, or even postpone, discretionary spending and purchase of durables. However, for the time being, sentiment in several larger economies remains relatively high and should continue to support further consumer spending. Hotspots where market potential for the coming months remains strong include the US, the UK, Germany, Poland, the Netherlands, China, India, Indonesia, Philippines, Malaysia, and Saudi Arabia. On the flip side, some economies where confidence was already at lower levels Italy, France, Portugal, Turkey, South Korea, Taiwan, Japan, Argentina, Brazil, Chile, and South Africa show a further deteriorating trend. 3 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE Global Ranking Increase from previous quarter No change from previous quarter Decrease from previous quarter Country Rank Country Rank Indonesia 1 127 Romania 33 92 Philippines 2 127 Belgium 34 91 India 3 124 Chile 35 91 US 4 123 Peru 36 90 Vietnam 5 120 South Africa 37 90 Denmark 6 118 Estonia 38 88 Malaysia 7 117 Turkey 39 88 UAE 8 116 Slovenia 40 87 Pakistan 9 115 Costa Rica 41 87 China 10 113 Bulgaria 42 85 Czech Republic 11 108 Portugal 43 85 Ireland 12 108 Kazakhstan 44 84 Germany 13 107 Japan 45 83 Saudi Arabia 14 107 Finland 46 83 Netherlands 15 106 Brazil 47 81 Hong Kong 16 105 Hungary 48 80 Poland 17 105 Latvia 49 80 Canada 18 Egypt 50 80 New Zealand 19 Croatia 51 79 Thailand 20 France 52 78 Israel 21 Lithuania 53 78 Austria 22 101 Taiwan 54 76 UK 23 101 Argentina 55 76 Colombia 24 101 Serbia 56 75 Sweden 25 99 Russia 57 70 Switzerland 26 99 Morocco 58 70 Mexico 27 96 Belarus 59 67 Singapore 28 94 Greece 60 67 Australia 29 93 Venezuela 61 67 Slovakia 30 93 Italy 62 62 Norway 31 92 Ukraine 63 62 Spain 32 92 South Korea 64 56 4 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE Asia-Pacific Consumers remain confident despite slight overall decline region still presents a strong growth opportunity for consumer centric businesses GLOBAL CONSUMER CONFIDENCE INDEX FOR ASIA-PACIFIC, : 112 GLOBAL CONSUMER CONFIDENCE INDEX FOR ASIA-PACIFIC, : 112 Asia-Pacific 112 115-3 Indonesia 127 127 0 Philippines 127 128-1 India 124 130-6 Vietnam 120 124-4 Malaysia 117 104 13 China 113 115-2 Hong Kong 105 107-2 New Zealand 104-2 Thailand 110-8 Singapore 94 97-3 Australia 93 91 2 Japan 83 86-3 Taiwan 76 79-3 South Korea 56 59-3 India 124 China 113 56 127 South Korea 56 Hong Kong Taiwan Vietnam 105 76 120 Philippines Thailand 127 Malaysia Singapore117 94 Indonesia 127 Australia 93 Japan 83 New Zealand Consumer optimism in Asia-Pacific is moderating, yet the region maintains the second-highest level of consumer confidence globally, after North America. Most countries in the region maintain a relatively high level of confidence. The region in general, and large countries like China and India in particular, still presents a strong growth opportunity for consumer-centric businesses. Businesses, however, may want to closely follow the developments in trade and tariff wars, which could undermine growth prospects and consumer sentiment in the region. Overall consumer confidence in the region declined by 3 points from 115 in the first quarter of to 112 in the second quarter. Japan, Singapore, South Korea, Taiwan, Hong Kong, and New Zealand all saw a decline in confidence of 2 or more points. Only two countries, Australia and Malaysia, saw an improvement in confidence of 2 or more points. The relative share of respondents who are optimistic regarding job prospects has declined marginally. There is significant heterogeneity across countries in terms of confidence levels, yet the region maintains a relatively high level of confidence, and thus remains a strong and buoyant consumer market. In contrast to the general moderation in the region s consumer confidence, two countries, Australia and Malaysia, saw an improvement in confidence, with the magnitude of increase being substantially greater in Malaysia. Consumers in Malaysia were considerably more optimistic about job prospects, personal finances, and spending for the next 12 months. 5 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

Asia-Pacific Low and declining inflation and a generally stable unemployment rate probably have helped boost consumer sentiment in Malaysia. However, since the election in May, near-term economic uncertainty in Malaysia has increased, which in turn might hamper consumer sentiment in the upcoming months. Confidence went up moderately in Australia, with only consumers perceptions of job prospects and their personal financial situation improving. Consumers remain reluctant to spend, though there appears to be some positive momentum possibly due to moderate declines in unemployment and inflation rates. Looking ahead, further improvements in confidence may be impacted by opposing factors; falling house prices and rising debt burden on the one hand, and the recent cuts in income taxes on the other. The region, especially China and India, still present strong growth opportunities for consumer-centric businesses. Confidence declined in most other Asia-Pacific countries, with the largest declines recorded in Thailand, India, and Vietnam. Recession perception is mounting in Thailand, with 80 percent of respondents saying the country is currently in a recession. Nevertheless, consumers are divided in their sentiment that Thailand will still be in recession in the next 12 months, with one-third saying yes and one-third saying no. In India, optimism regarding personal finances and spending intentions have declined considerably. Increasing oil prices have evoked pressure on inflation and macroeconomic prudence in India, which is likely to have influenced consumer sentiment. Inflation fears amid rising oil prices are also impacting consumer confidence and purchasing power in Vietnam. Despite the current weakening in confidence, given the large potential for growth and consumer market expansion in these economies, confidence is likely to stay at high levels in the coming months. Some of the region s more mature economies, such as Japan, Singapore, South Korea, Taiwan Hong Kong, and New Zealand all saw moderate declines in confidence. In all these countries, except in Hong Kong and New Zealand, the confidence levels are also relatively low. In Japan, consumers optimism regarding their personal finances and job prospects is fading, while pessimism over the future of the economy is rising. Consumers in Korea, Taiwan, and Singapore are increasingly pessimistic about job prospects, personal finances, and spending. Concerns over rising oil prices and the impact of a trade and tariff war cast a cloud over the economic and consumer outlook in all these countries. While rising household debt would add a further constraint to Korean consumers, high wages and strong labor markets may be a positive for Singapore s consumers. The largest economy in the region, China, had a decline in confidence of 2 points, despite the continuing role of consumption in supporting its economic growth. However, the level of confidence remains relatively high, ranking 10 th among all countries surveyed. As in the last quarter, almost 70 percent of respondents consider job prospects as good, and 66 percent consider their personal financial situation as good. There was a slight decline in the buying tendency of consumers, but overall consumers remain positive. Even with several challenges, including the uncertainties around trade tensions with the US and domestic financial deleveraging, China s large consumer market is likely to continue to offer businesses growth opportunities. 6 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE Africa and the Middle East Confidence improves but recession concerns persist GLOBAL CONSUMER CONFIDENCE INDEX FOR AFRICA/MIDDLE EAST, : 93 Morocco 70 Egypt 80 Saudi Arabia 107 UAE 116 Pakistan 115 Africa & The Middle East 93 91 2 UAE 116 110 6 Pakistan 115 107 8 Saudi Arabia 107 95 12 South Africa 90 95-5 Egypt 80 85-5 Morocco 70 67 3 56 127 South Africa 90 In Africa and the Middle East, the overall consumer confidence index level improved by 2 points to 93 in the second quarter of this year, after a 1-point decline in the previous quarter. Confidence remains lower than in Asia-Pacific and North America but is higher than in Europe and Latin America. Improving confidence levels are indeed positive news for consumer-oriented businesses that focus on the Middle East and African economies. While some countries in the region already offer an affluent consumer market, others have significant potential to expand their market base, which makes the region a promising location for businesses. The overall consumer confidence in Africa and the Middle East improved in the second quarter of. The level of overall consumer confidence remains lower than Asia-Pacific, North America, and the global average. Saudi Arabia had the largest gain in confidence, followed by Pakistan and the United Arab Emirates. Confidence levels in these countries remain above 100. Morocco posted only a modest gain of 3 points, but confidence levels remain well below the global or regional levels. Consumer confidence declined in only in two countries in the region, South Africa and Egypt, by 5 points each Overall, consumers in the region are optimistic about their personal financial situation, but less so about job prospects. Recession concerns persist. The improvement in the overall index for the region was driven by a decline in pessimism over spending intentions. Consumers perceptions about job prospects and their personal finances for the next 12 months remained somewhat unchanged from last quarter, but overall the region s consumers remain pessimistic about spending and job prospects. 7 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

Moreover, the improvement was mixed. The largest economy in this group, Saudi Arabia, had the largest gain in the region, followed by Pakistan and the United Arab Emirates (UAE), while South Africa and Egypt experienced declines. Improving confidence levels are indeed positive news for consumer oriented businesses focused economies in the Middle East and Africa. Saudi Arabia, and the UAE already have an affluent consumer market exhibiting high and improving confidence. Both countries are also trying to diversify their economies to reduce the overreliance on oil, which includes attempts to stimulate investment both individually and as a joint venture between the two countries. Rising oil prices and the consequent improvement in income growth in Saudi Arabia has eased the government s effort for fiscal expansion, which helps boost consumption. Negative sentiment in the first quarter, perhaps driven by the introduction of the value-added tax in January, seems to be dissipating, and consumers are gaining confidence in both the economy and their financial situation. The recent policy change allowing women in Saudi Arabia to drive might also be improving consumer sentiment, as it might help boost automobile sales. Attempts are also being made to boost tourism and infrastructure spending in the UAE, which bodes well for stimulating consumer confidence further in the country. These efforts, along with the UAE s continued push to raise investment in the non-oil economy, is likely to help consumer confidence in the upcoming months. In both Saudi Arabia and the UAE, the prospects for consumer-centric businesses are likely to persist. In Pakistan, consumer confidence has reached an all-time high of 115, following an 8-point increase. Consumers in Pakistan are increasingly optimistic about job prospects and their personal financial situation. However, it is uncertain whether the high level of confidence can be sustained in the future. Pakistan s new government is likely to approach IMF for assistance to address the country s worsening external balance, which might lead to significant fiscal and monetary tightening. This, along with rising consumer prices, will pose major challenges to consumer confidence post-election. Other countries, including Morocco and South Africa, still have low confidence levels, but given the fact that these economies have significant growth potential, their consumer markets are only likely to expand further. 8 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE Latin America Confidence declines in half the region pessimism over jobs and spending persist GLOBAL CONSUMER CONFIDENCE INDEX FOR LATIN AMERICA, : 86 Mexico 96 Latin America 86 88-2 Colombia 101 99 2 Mexico 96 93 3 Chile 91 95-4 Peru 90 95-5 Costa Rica 87 83 4 Brazil 81 88-7 Argentina 76 83-7 Venezuela 67 57 10 Costa Rica 87 Colombia 101 Peru 90 Venezuela 67 Argentina 76 Brazil 81 56 127 Chile 91 Consumer confidence in Latin America declined by 3 points in the second quarter of, ending its recent upward trend. Confidence gains in Venezuela, Costa Rica, Mexico, and Colombia were not enough to offset the declines in the region s larger countries, Argentina, Brazil, Peru, and Chile. Argentina, Brazil, Peru, and Chile together constitute about 60 percent of Latin America s GDP and population, so declines in those countries do not bode well for the region. Pessimism over job prospects, spending intensity, and even the future of the economy persist across Latin America. Job prospects and spending intentions appear to be the major factors driving down consumer sentiment in Latin America, with job prospects being a major concern for a large portion of consumers in every country. Overall, Latin American countries have a diverse set of issues, including political and economic uncertainty, unemployment, inflation, and low economic growth, potentially posing more challenges to businesses in the region in the short to medium term. After a 1-point increase in the first quarter, confidence declined by 2 points in the second quarter to 86 points. Confidence declined considerably in Argentina, Brazil, Peru, and Chile, while improving in Colombia, Mexico, Costa Rica, and Venezuela. Argentina s drop of 7 points is among the top-five largest declines globally. In contrast, Latin America s most troubled economy, Venezuela, was among the top-five increases. Even so, Venezuelans confidence remains abysmally low. Concerns about job prospects in next 12 months, the state of the economy, and spending intentions are persistent across Latin America. 9 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

Latin America Brazil, Latin America s largest economy, is struggling to sustain its economic recovery, and consumers confidence is in decline. Despite low inflation rates, high unemployment has translated into increased pessimism about job prospects 77 percent of respondents consider job prospects not so good, up from 67 percent in the last quarter. In addition, 87 percent of consumers feel Brazil is still in recession, and more than half of consumers do not believe that the recession will be over in the next 12 months. The increasing economic and political uncertainty in Brazil, driven by tightening global financial conditions, increases in oil prices, and its upcoming national election are likely to worsen consumer sentiment in the coming months. Latin American countries have a diverse set of issues, including political and economic uncertainty, unemployment, inflation, and low economic growth, which pose more challenges to businesses in the region in the short to medium term. In Argentina, high inflation and unemployment combined with a weak economy, are all negatively impacting consumer confidence. This country s recent pledge to IMF to initiate tough reforms and fiscal consolidation will have a short-term negative impact on growth, which might further worsen consumer sentiment. The decline in Chile s consumer confidence is possibly driven by concern about job prospects, despite solid economic growth and moderate inflationary pressure in the first quarter of this year. Job security, crime, and debt top the list of concerns in Chile, and in contrast to all other Latin American economies, the economy is not a top concern. Surprisingly, in Venezuela, despite the political turmoil, accelerated sanctions from the United States and depressed oil production, consumers optimism improved, resulting in an increase in consumer confidence of 10 points to 67 in. Despite the large increase, Venezuela still has the lowest confidence level in Latin America. The gain in Mexico s consumer confidence is likely to continue, as the political uncertainty in the country has eased following July s general election. Yet, the uncertainty about NAFTA renegotiations will remain a drag on Mexico s economic and consumer outlook. 10 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE North America Confidence remained stable in but optimism over job prospects declines GLOBAL CONSUMER CONFIDENCE INDEX FOR NORTH AMERICA, : 121 North America 121 121 0 US 123 123 0 Canada 103-1 Canada US 123 56 127 After reaching a historically high level of confidence at 121 in the first quarter of, North American consumers sentiment seems to have plateaued. Whereas consumer confidence declined marginally by 1 point in Canada in the second quarter of, it remained unchanged in the US thus keeping the region strong and stable. Consumer Confidence in North America remained unchanged, maintaining its all-time high of 121. Consumer confidence decreased marginally by 1-point in Canada and was unchanged in the United States. Confidence in Canada is lower than in the United States and other large advanced economies like Germany and is likely to be affected by escalating global trade tensions. Consumers in the region remain optimistic about job prospects, though sentiment regarding job prospects has declined marginally. Concern over the economy has climbed to the top of consumers list of concerns, up from fifth place in the last quarter when it was still behind personal health, debt terrorism, and job security. Consumers assessment of job prospects declined marginally compared to the last quarter, yet overall they remain optimistic about job prospects for next 12 months. Compared to the previous quarter, consumers concerns have shifted. Whereas the top concerns in the first quarter were health, debt, and job security, concerns about the economy became most prevalent on consumers list of concerns during the second quarter. Recession concerns are not persistent in the region, and the share of respondents who think the country is in recession remained the same at only 35 percent. 11 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

North America Concern over job prospects remained largely unchanged in the US in the second quarter, and the overall balance is still positive with 67 percent of respondents thinking that job prospects are good compared to 27 percent who think otherwise. Consumers assessment of their current personal financial situation improved marginally, and their spending intentions, which compares their personal financial situation and current market conditions, did not change. While the economy tops the list of concerns among US consumers, recessionary worries were low, suggesting that strong economic and job growth in the US will continue to support strong confidence readings. The levelling off in overall confidence index suggests consumers do not foresee growth accelerating in the coming months. However, this is not necessarily worrisome for businesses, as the level of confidence remains high compared to historic levels, and when compared to other countries both within emerging and advanced economies. 1 In general, consumer confidence in Canada is lower than in large advanced economies such as the US and Germany and several emerging ones, yet it is higher compared to levels prior to the global recession in 2008 2009. Perceptions about job prospects and consumers personal financial situations declined marginally. Spending intentions have declined slightly more, perhaps due to rising inflation: the average inflation rate for the first five months of has been half a percent higher than the average for 2017; and interest rates. While inflation would hamper consumers purchasing power directly, higher interest rates would potentially raise the cost of debt both developments would be bad for consumers discretionary spending. 2 High confidence levels in the US and Canada should continue to support consumer spending in the upcoming months. High confidence levels in the US and Canada should continue to support consumer spending in the upcoming months. Yet, a shift in US trade policy could increase concerns among consumers, as the onset of import tariffs would escalate domestic prices in the US. If the import tariffs raise prices, and if businesses pass on the increase to consumers, it is quite likely that consumers will cut back on their discretionary purchases. Also, a retaliation to US tariff policies from trading partners such as China, Canada, Mexico, and Europe would hamper the US economy, which could also affect consumer sentiment in the future. The trade war would escalate anxiety in Canada s economic growth as well, which relies quite heavily on exports to the United States. The resulting uncertainty amid rising inflation and high borrowing costs could negatively impact consumer confidence in Canada. 1 The quarterly US data shown here are based on The Conference Board Global Consumer Confidence Survey and are included to enable country/regional comparisons. These data and methodology differ from the Consumer Confidence Survey and Consumer Confidence Index which are published monthly by The Conference Board. For more information, see: https://www.conference-board.org/data/consumerconfidence.cfm 2 The quarterly data for Canada shown here are based on The Conference Board Global Consumer Confidence Survey and are included to enable country/regional comparisons. These data and methodology differ from the Index of Consumer Confidence, which are published monthly by The Conference Board of Canada. For more information, see: https://www.conferenceboard.ca/topics/economics/consumer_confidence.aspx 12 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE Europe Confidence improved slightly in, but most consumers believe recessionary conditions will continue GLOBAL CONSUMER CONFIDENCE INDEX FOR EUROPE, : 87 GLOBAL CONSUMER CONFIDENCE INDEX FOR EUROPE, : 87 Ireland 108 Portugal 85 Spain 92 UK 101 Norway 92 Denmark 118 Sweden 99 Finland 83 Estonia 88 Latvia 80 Lithuania 78 Belarus 67 Netherlands Poland 106 Germany 105 Belgium 107Czech Republic 91 108 Slovakia Austria 93 FranceSwitzerland Hungary 101 99 Slovenia 80 Romania 78 Italy Croatia 87 92 Serbia 62 79 75 Bulgaria 85 Greece 67 Ukraine 62 Turkey 88 Russia 70 Kazakhstan 84 Israel 56 127 Europe 87 86 1 Denmark 118 114 4 Czech Republic 108 108 0 Ireland 108 103 5 Germany 107 108-1 Netherlands 106 101 5 Poland 105 103 2 Israel 105-3 Austria 101 100 1 UK 101 96 5 Sweden 99 99 0 Switzerland 99 104-5 Slovakia 93 90 3 Norway 92 89 3 Romania 92 91 1 Spain 92 91 1 Belgium 91 88 3 Estonia 88 81 7 Turkey 88 89-1 Slovenia 87 81 6 Bulgaria 85 81 4 Portugal 85 90-5 Kazakhstan 84 79 5 Finland 83 82 1 Hungary 80 78 2 Latvia 80 86-6 Croatia 79 77 2 France 78 79-1 Lithuania 78 77 1 Serbia 75 74 1 Russia 70 68 2 Belarus 67 60 7 Greece 67 61 6 Italy 62 66-4 Ukraine 62 58 4 Europe is one of the two regions that showed a modest improvement in consumer confidence (the other was Middle East & Africa). The aggregate improvement masks differences across countries, but overall, confidence in the region remains much lower than other regions of the globe. Long-term challenges to strengthen the buoyancy of its consumers relative to other regions remain. Improving yet low levels of confidence suggest a moderation in Europe s consumer market, though some markets remain favorable. Economies in several countries including Germany, UK, Poland, the Netherlands, Czech Republic, and smaller ones like Denmark, Ireland, and Austria are among Europe s hotspots which offer relatively stronger consumer markets. Also, several European economies both east and west show an improving trend, which is a promising signal. Part of the drag on the European confidence level was driven by Russia, which accounts for 17 percent of the region s population. In addition, several populous countries such as Italy and France, and several Eastern European economies, also have low levels of confidence. And finally, Germany, the largest economy in the region, showed a modest decline in consumer confidence, though from a much higher level than most other European economies. 13 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

Europe Europe s confidence level increased slightly by 1 point from 86 to 87 in the second quarter, recouping the loss from the first quarter. The increase was primarily driven by a small decline in the pessimism over job prospects. On average, Europeans perceptions on job prospects, personal finances, and spending are unchanged from the previous quarter, but pessimists continue to outweigh optimists. Despite improved conditions in the past two years, consumers in nearly half of the European economies currently believe that their country is in recession, and most believe these recessionary conditions will continue in the next 12 months. The economy has now moved up to first place in consumer s list of concerns, up from third position last quarter. The Netherlands, the UK, and Greece all posted significant gains in confidence, suggesting an improving consumer outlook. Of the 34 European economies, 8 countries showed declines, which included three of the largest economies in the regions, namely Italy, France, and Germany. European perceptions about personal financial situations, spending, and the state of the economy did not change significantly compared to the previous quarter. In general, the percentage of pessimistic consumers outweigh the percentage of optimistic ones on all these aspects. Nevertheless, a modest decline in the share of negative perceptions on job prospects helped create a marginal gain in overall confidence. In the Netherlands, the consistent decline in the unemployment rate, resulting in a tightening labor market, moderate inflation, and gradually increasing wages has supported consumer sentiment. In the UK, general optimism among British consumers has improved, though marginally, on all fronts job prospects, personal finances, and the economy. This echoes the momentum in second quarter GDP growth and improvement in job growth, which is probably part of the long wave of the strong European economy during 2017. It is uncertain, however, whether the momentum in jobs, which are mostly part-time jobs, will be sufficient to sustain improvements in confidence levels and offset an increasingly uncertain political and economic environment as Brexit negotiations continue. The Conference Board Leading Economic Index (LEI) for the UK is increasingly pointing in the direction of an upcoming recession. In Greece, consumers seem to have been influenced by the slow increases in prices, improving economy, and still high but declining unemployment rates. The recent EU agreement to extend debt relief might further help to buoy sentiment in the coming months. Confidence declined in 8 out of 34 European countries. Larger Western European economies such as France and Germany experienced marginal declines in consumer confidence, while Israel, and politically unsettled Turkey saw somewhat larger decreases. Declines in Latvia, Portugal, Switzerland, and Italy were more pronounced. While the share of consumers who are positive on the three consumer-related questions job prospects, personal finances, and spending intentions remains high in Germany, which helps its consumer confidence stay above 100, it is not the case in Europe s two other large economies, Italy and France. Positive sentiments on job prospects declined in France and Italy, and perceptions of personal finances and spending intentions declined in Germany 14 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

Europe and Italy; thus, the overall index declined everywhere. Rising concerns about unemployment amid fears of a slowing recovery in France seem to have translated into less optimism about job prospects compared to the previous quarter. The Conference Board Global Economic Outlook forecasts 0.2 percentage point lower growth in France in compared to 2017. In Italy, persistently high levels of unemployment at about 11 percent, gradually increasing prices, uncertainty regarding economic policy, and political stability could all be negatively impacting sentiment. At the time of this survey, the political deadlock in Italy was still persistent, which might have figured in consumers evaluations. Economic recovery in Italy has also lost its momentum, with signals suggesting further slowing in. If unemployment remains high and prices continue to rise, Italy will struggle to boost confidence in the next quarters. The political and economic environment in Turkey is also worsening and is not conducive to improving confidence in the short term. The trend in regional consumer confidence suggests a moderation in Europe s consumer market, though some markets including Germany, UK, Poland, the Netherlands, Czech Republic, Denmark, Ireland, and Austria remain favorable. Personal finances are perceived to be an issue by consumers in Western European economies such as Finland, France, Greece, Italy, and Norway; in Eastern European countries such as Belarus, Hungary, Kazakhstan, Lithuania, Portugal, Serbia, and Ukraine; and in Russia and Turkey. All the above mentioned Western European economies, except Norway, also expressed concerns about job prospects. In Eastern Europe, consumers in all countries except in Poland expressed pessimism over job prospects, despite low and decreasing unemployment rates and sustained wage growth. In 15 of 34 European countries, consumers are concerned about the current state of the economy, with a relatively large portion varying from 53 percent in Bulgaria, Hungary, and Latvia to 92 percent in Ukraine saying their country is currently in recession. Even more pronounced is the concern over the future of the economy, which is quite pessimistic across Europe. The Czech Republic is an exception, where the optimism and pessimism on the future of the economy are somewhat evenly balanced. In general, with a low unemployment rate, consumers in this country are quite optimistic on all other aspects the current state of the economy, employment prospects, and personal finances and maintain a high level of confidence at 108. Consumers top concerns for the region over the next six months have shifted somewhat since last quarter. Now, the economy, health, and job security are cited as top concerns, compared to last quarter when the economy was third after job security and health. 15 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

BACK TO CONTENTS PAGE Global Consumer Confidence Index by Region and Country Point Change Point Change Global Consumer Confidence Index 104 106-2 Asia-Pacific 112 115-3 Australia 93 91 2 China 113 115-2 Hong Kong 105 107-2 India 124 130-6 Indonesia 127 127 0 Japan 83 86-3 Malaysia 117 104 13 New Zealand 104-2 Philippines 127 128-1 Singapore 94 97-3 South Korea 56 59-3 Taiwan 76 79-3 Thailand 110-8 Vietnam 120 124-4 Africa & The Middle East 93 91 2 Egypt 80 85-5 Morocco 70 67 3 Pakistan 115 107 8 Saudi Arabia 107 95 12 South Africa 90 95-5 UAE 116 110 6 Latin America 86 88-2 Argentina 76 83-7 Brazil 81 88-7 Chile 91 95-4 Colombia 101 99 2 Costa Rica 87 83 4 Mexico 96 93 3 Peru 90 95-5 Venezuela 67 57 10 North America 121 121 0 Canada 103-1 US 123 123 0 Europe 87 86 1 Austria 101 100 1 Belarus 67 60 7 Belgium 91 88 3 Bulgaria 85 81 4 Croatia 79 77 2 Czech Republic 108 108 0 Denmark 118 114 4 Estonia 88 81 7 Finland 83 82 1 France 78 79-1 Germany 107 108-1 Greece 67 61 6 Hungary 80 78 2 Ireland 108 103 5 Israel 105-3 Italy 62 66-4 Kazakhstan 84 79 5 Latvia 80 86-6 Lithuania 78 77 1 Netherlands 106 101 5 Norway 92 89 3 Poland 105 103 2 Portugal 85 90-5 Romania 92 91 1 Russia 70 68 2 Serbia 75 74 1 Slovakia 93 90 3 Slovenia 87 81 6 Spain 92 91 1 Sweden 99 99 0 Switzerland 99 104-5 Turkey 88 89-1 UK 101 96 5 Ukraine 62 58 4 16 THE CONFERENCE BOARD GLOBAL CONSUMER CONFIDENCE REPORT RESULTS www.conferenceboard.org

About The Conference Board Global Consumer Confidence Survey The Conference Board Global Consumer Confidence Survey is conducted in collaboration with Nielsen. It was conducted in February and polled more than 32,000 online consumers in 64 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample includes internet users who agreed to participate in this survey and has quotas based on age and gender for each country. It is weighted to be representative of internet consumers by country. Because the sample is based on those who agreed to participate, no estimates of theoretical sampling error can be calculated. However, a probability sample of equivalent size would have a margin of error of ±0.6% at the global level. This survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. The Conference Board uses a minimum reporting standard of 60% internet penetration or an online population of 10 million for survey inclusion. The Nielsen China Consumer Confidence Index is sourced from a separate survey conducted by Nielsen China, which is based on a mixed methodology survey of more than 2,400 respondents in China. The Global Consumer Confidence Survey was established in 2005. About The Conference Board The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: to provide the world s leading organizations with the practical knowledge they need to improve their performance and better serve society. Winner of the Consensus Economics 2016 Forecast Accuracy Award (US), The Conference Board is a non-advocacy, not-for-profit entity, holding 501(c)(3) tax-exempt status in the USA. http://www.conferenceboard.org About Nielsen Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content video, audio and text is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world s population. For more information, visit http://www.nielsen.com THE CONFERENCE BOARD, INC. (www.conferenceboard.org ) AMERICAS + 1 212 759 0900 customer.service@conferenceboard.org ASIA + 65 6325 3121 service.ap@conferenceboard.org EUROPE, MIDDLE EAST, AFRICA + 32 2 675 54 05 brussels@conferenceboard.org THE COMMITTEE FOR ECONOMIC DEVELOPMENT OF THE CONFERENCE BOARD + 1 202 469 7286 www.ced.org THE CONFERENCE BOARD OF CANADA + 1 613 526 3280 www.conferenceboard.ca Copyright The Conference Board, Inc. All rights reserved.