KUALA LUMPUR, Oct 18 — Concerns about a shrinking job market have affected consumer confidence, according to the Malaysian Institute of Economic Research’s (MIER) latest report for the third quarter of 2016.
The report released today showed that consumer confidence fell almost five points from the second quarter, and now stands at 73.6.
“The Consumer Sentiments Index (CSI) continues to remain below the 100-point threshold level of confidence, its ninth since 2Q14 (second quarter 2014), indicating that consumer sentiments are still fragile,” the report by the economic think-tank said.
A huge contributing factor for the faltering sentiments are worries about the job market, as 60 per cent of consumers said that there are reduced vacancies available, which is the largest proportion since 2009.
“Positive sentiments have shrunk in all categories of households, except the low income group,” the report said.
A majority of consumers are also expecting their financial situation to worsen in the coming months, while almost half think that fewer jobs will be up for grabs in the next quarter.
The residential property index (RPI) also fell, plummeting almost 20 points quarter-on-quarter to settle at 82 points.
“High property prices and cost of living amid flat or lower incomes may have squeezed many homebuyers out of the market, crimping builders’ sentiments lately and for the rest of 2016 as well,” the report said.
It also said that only eight per cent of builders reported better sales in the latest quarter.
