India leads in the consumer confidence index in Q3

New Delhi: India continued to lead the global consumer confidence index in the third quarter with 131 points same as the previous quarter. It is followed by US (119 points), Philippines (117) and Indonesia (116). Although more than 54 per cent polled said India’s economy is still in slowdown zone, its consumer confidence score remained intact at 131, said global information and insights provider Nielsen.

In the June quarter, 50 per cent people had expressed that they feel India is still in ‘economic recession’. “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 report said.

According to Nielsen India Region senior vice president Roosevelt D’Souza, 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,” he said, adding that ongoing festive season may lend buoyancy, through smart marketing and attractive deals.

However, he added, “Volatility still exists in consumer sentiment owing to deficit monsoons, and uncertainty in certain pockets when it comes to consumption.” Nearly two third online respondents indicated this is a good time to buy things they want and need, once again leading the global top 10 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),” it added. Moreover, 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 and holidays and vacations with 56 per cent respectively and 50 per cent on new clothes.

“Nearly two in five respondents (37 per cent) are looking to invest in retirement funds this quarter,” it said adding that discretionary spending has seen a fillip from same quarter last year.