Improved economic activity, loosened mobility restrictions and declines in COVID-19 cases trump inflation concerns with consumers, and global consumer confidence ticked up to another record high in the second quarter of 2021.
The Conference Board Global Consumer Confidence Survey found concerns over health, economic recovery, and job prospects remained for many people.
The survey found that overall global consumer confidence rose slightly to 109 in the second quarter from 108 in the first (a figure above 100 is considered positive).
The index now surpasses the 106 reading registered at the pandemic’s onset in the first quarter of 2020 and is the highest recorded since the survey began in 2005.
Around the world
Confidence rose in 42 of 65 markets (65%) surveyed, with the strongest gains in regions like North America and Europe with relatively high vaccination rates.
On the other hand, confidence declined in regions wrestling with new infections, low vaccine availability, and ongoing economic restrictions.
“Consumer confidence continued to climb worldwide in Q2, albeit at a much slower rate than the 10-pt gain recorded in Q1,” Dana Peterson, Chief Economist of The Conference Board said in a statement. “This reflects a global economic recovery that remains highly uneven, with many economies still struggling to contain COVID-19 amid a shortage of vaccines, new variants, and supply-chain bottlenecks that are raising prices. Nonetheless, the elevated level of global consumer confidence bodes well for spending and, consequently, the global economic revival in the second half of this year and into 2022.”
In North America, confidence already stood at a strong 110 in the first quarter, and it surged further to 125 in the second quarter—reflecting continued fiscal and monetary support as well as ongoing vaccination campaigns and loosened mobility restrictions.
Members of the Gulf Cooperation Council (GCC)—where confidence stands at 124 (+6 pts)—also benefited from fast vaccine rollouts that have enabled a return of tourism.