India continues to lead in Q3 consumer confidence index
India continues to lead the global confidence index for the quarter at 131 points, the same as last quarter followed by US (119), Philippines (117) and Indonesia (116), according to the Nielsen Consumer Confidence Index.
More than half of respondents (54 per cent) polled that they feel India is still in economic recession, up four points from last quarter (50 per cent in Q2 2015). However, this quarter 67 per cent indicate that India will be out of the recession over the next 12 months, as against 61 per cent last quarter.
The Nielsen Consumer Confidence Index measures perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with Internet access in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
In the latest online survey, fielded between August 10 and September 4, 2015, over four in five (81 per cent) urban Indian respondents indicated the highest level of optimism globally on job prospects in the next 12 months. This level remains the same as last quarter (81 per cent in Q3 2015).
“This year, the Indian consumer continues to be resilient and hopeful when it comes to economic outlook. What is interesting is that discretionary spending is looking up, even when compared to the same period last year amongst urban respondents. At the same time, there is a cautionary tone as is evident in their savings intent. The festive season may lend to this buoyancy, though smart marketing and attractive deals, both online and in store, may also stimulate the market ” said Roosevelt D'Souza, senior vice president, Nielsen India Region.
“Volatility still exists in consumer sentiment owing to deficit monsoons, and uncertainty in certain pockets when it comes to consumption” he added.
Nearly two-thirds (66 per cent) online respondents polled indicated this is a good time to buy things they want and need, once again leading the global top ten countries for this parameter in the quarter.
These optimism levels are six percentage points higher than the same period last year (59 per cent in Q3 2014).
There is an uptick in intent on utilisation of spare cash, as 70 per cent of online respondents have indicated they will invest in savings this quarter, followed by new technology (56 per cent), holidays and vacations (56 per cent) and half of online respondents polled (50 per cent) will spend on new clothes. Nearly two in five respondents (37 per cent) are looking to invest in retirement funds this quarter.
Discretionary spending has risen from the same quarter last year. In Q3 2014, 61 per cent indicated they will invest spare cash in savings, 44 per cent in new technology projects, 43 per cent in new clothes, and 42 per cent on holidays and vacations.
Continuing a trend of caution when it comes to spending habits, 83 per cent of the respondents have changed their spending habits to save on expenses, echoing trends from last quarter (80 per cent in Q2 2015), and five percentage points higher than the same quarter last year (78 per cent in Q3 2014).