Consumers’ confidence in India touched its highest in six months during November, helped by a rise in sales during the festival season and a positive outlook on job security, according to the financial information company BluFin’s Consumer Confidence Index. The monthly index increased 3.4 points, to 41.6 points in November. This is the highest increase since October 2011.
An improvement in the spending sentiment index and the employment sentiment index led to the upward trend in consumer confidence, BluFin said.
“The rising score since the past two months and the slight uptick compared to the previous year could be an early sign of the consumer sector eventually bottoming out and making way for a recovery,” said BluFin’s chief executive officer Rashid Bilimoria. “However, the current positive trend will be validated provided this upward pattern persists in the coming months.”
The index, which includes data collected from 4,000 respondents across 18 cities, assesses the pulse of urban Indian consumers with regard to the economy and spending behaviour. It rose by 6.5 points in the west to 44.2 points and by 3.6 points in northern India to 35.5 points.
In south and east India, the index remained almost flat, suggesting that consumers in these regions are still concerned about the weak fundamentals of the economy and unlikely to spend even during festivals.