SINGAPORE consumer confidence for the next few months has dropped to below the market's historical level, in line with sentiment across the Asia Pacific region which has turned increasingly pessimistic.

The latest bi-annual Consumer Confidence survey by MasterCard Worldwide, released on Wednesday, found that only four of the 14 markets surveyed are optimistic about the first half of next year. They are Vietnam, China, India and Singapore.

And most people plan to cut back on dining and other discretionary expenses.

They blamed the souring mood on the economic volatility and concerns over a global recession.

The index score for Singapore fell to 62.3, from 87.3 in May, even though it is still considered 'optimistic'.

A score of zero is considered the most pessimistic, 100 is most optimistic, and 50 is neutral.

Singapore is the 4th most optimistic market in the region, while sentiments of most other consumers have dropped below 50 to pessimistic levels, according to the MasterCard index.

Of the Singapore consumers polled, 64 per cent said they would be cutting back on discretionary spending.

For those who plan to continue spending, the top three areas will be on dining and entertainment, fitness and wellness, and personal travel. Other priorities ranked lower were fashion and accessories, buying or upgrading property, and children's education.

The bi-annual survey analyses consumers' perceptions of economic conditions over the six months ahead. About 406 consumers were polled here in September for their outlook till next March.

Confidence fell most heavily in Hong Kong - to 41.8 from 83.1 six months ago - and in Taiwan, where the Index fell to 32.1 from 71.3.

The overall index was at 47.4, down from 55.0 in the last survey and 67.3 a year ago but still above the average of 32.3 recorded during Asia's financial crisis of a decade ago, MasterCard said.

'Consumers are also tightening their belts,' the company said, reporting that a separate analysis of purchasing priorities found 70 per cent of the region's consumers looking to reduce discretionary spending for the next 12 months.

'Consumers across the region are bracing themselves for tougher times ahead in 2009,' said Mr Yuwa Hedrick-Wong, Asia-Pacific economic adviser for MasterCard Worldwide.

The company said it surveyed 6,019 consumers during September.

The Index of Consumer Confidence measures consumers' outlook toward employment, the economy, regular income, the stock market and quality of life.