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Cambodia: Household income drops, consumption increases
The average monthly household income of Cambodian customers dropped in the second quarter of this year as compared to the same quarter last year, according to a report by Indochina Research.
Kim Chenda, associate research director at Indochina Research, told Khmer Times yesterday that consumers in all the surveyed provinces generated an average household income of $376.12 in the second quarter of this year, compared to an income of $382.81 for the second period last year.
As per the report, Cambodian consumers purchased 10.90 products on average in the second quarter of this year, compared to 7.87 products in the same quarter of last year and 10.18 products in the previous quarter.
Chenda said that there was a big drop in income in plateau and mountain, Tonle Sap and urban areas in the second quarter of this year. However, consumption increased in the latest quarter.
“We can summarise that businesses have not yet fully recovered and there could be less number of extra work or jobs that contributed to the lower income. Other things could be job losses and salary cuts,” said Chenda.
Meanwhile, the average income in the capital and coastal areas rose to $663 and $329, respectively.
As per the report, the monthly household income in the urban area increased to $479 in the second quarter of this year compared to $442 in the first quarter.
Meanwhile, income in the rural area dropped to $301 in the second quarter, compared to $371 in the previous quarter. However, the average rural income in the second quarter last year was $245.
The consumer confidence score rose to 50 points, from 49 points in the previous quarter.
“The better consumer confidence score in the capital is mainly driven by their higher average monthly household income,” the report stated, adding that the score is expected to reach 55 points in the third quarter of this year, indicating the optimism in consumers.
“The positive outlook of consumers is driven by the improving economic condition in the country, while tourism sector is now seeing a significant improvement due to domestic tourists,” the report pointed out.
The survey ‘A Light Glimpse of Cambodia’ was compiled after interviewing 2,000 consumers over the phone and face-to-face at their homes in Khmer language. The survey covered 10 provinces of five regions including the capital, plateau and the mountain belt, coastal area, Tonle Sap and the plains.
“Cambodians remain to be in the safety zone in terms of spending and financial situation in the second quarter of this year mainly due to their lower monthly household income. Though residents in the capital area have significantly improved confidence, their income is yet to recover to the same level as last year,” the report said.
Mostly, consumers purchased more products and services during the quarter. Consumption of seasonings, instant noodles, hair conditioner, beer, toothpaste, shampoo, milk and detergent went up in the second quarter.
“The purchase of most categories improved except for vitamins and medicines,” the report stated, adding that the purchase of milk and beer rose most among all items.
Source: https://www.khmertimeskh.com/501115018/household-income-drops-consumption-increases/