SINGAPORE consumers are now far more bullish on market and economic prospects than they were in mid-2009, but spending is likely to remain prudent, going by recent market surveys.

 

The latest consumer confidence index compiled by MasterCard jumped to 79.4 for the second half of 2009, more than double the reading of 31.2 six months earlier, and exceeding the H2 2008 reading of 62.3 too.

 

The 400 consumers polled here were vastly more optimistic in their outlook on the economy, employment, the stock market and their quality of life, as well as their expectations of a regular income stream in the first half of 2010.

 

The Singapore index was also higher than the Asia Pacific confidence rating of 66.3.

 

Yuwa Hendrick-Wong, MasterCard Worldwide economic adviser for the Asia-Pacific, the Middle East and Africa, said: 'The overall robust rebound in consumer confidence in Singapore reflects the strong progress seen in the real economy.'

 

But persistent uncertainty in the global economic outlook will still affect consumers' savings and spending behaviour.

 

'Most consumers are still saving for precautionary reasons,' he said.

 

The twice-a-year survey found that a larger proportion of respondents now plan to increase the amount they will save in the first half of 2010 compared to six months ago, with most citing the need to 'prepare for the unforeseen'.

 

Other key reasons include saving for retirement, investment, purchasing consumer electronics, air travel, and buying, upgrading or renovating their property.