Times of India: July, 2015
Mumbai: India continues to lead the global confidence index for the quarter with a one point increase from last quarter to 131 followed by Philippines (122) and Indonesia (120). The consumer confidence in urban India reflects levels last achieved in the first quarter of 2011, which, according to Nielsen, has been propelled by a positive growth in consumer spending on consumer packaged goods and a gradual decrease in job security concerns.
Half of respondents (50%) polled that they feel India is still in economic recession, up six points from last quarter (44% in Q1 2015). However, three in five (61%) indicate that India will be out of the recession over the next 12 months.
The Nielsen consumer confidence index (CCI) 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 in May, over four in five (81%) urban Indian respondents indicated the highest level of optimism globally on job prospects in the next 12 months. "The optimistic trend in consumer sentiment continues, and this quarter reflects the highest levels since 2011. While this is positive new, discretionary spending levels are yet to see a huge transformation," said Piyush Mathur, president, Nielsen India Region.
"There are signs of a positive growth in consumer spending on consumer packaged goods, indicated by a slight increase in growth compared to the previous quarters. There has also been a gradual decrease in concerns on job security over the last few quarters along with interest rate cuts, and an increase in intention for home loans — thus enhancing the sentiment on the economy and portraying an optimistic picture for the future," said Mathur.