Consumer confidence in India declined in Q3: Nielsen

Oct 31 2013, 01:21 IST
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SummaryConsumer confidence level in India declined but India remained third most bullish consumer market in the world: Nielsen

Consumer confidence level in India declined compared with the previous quarter but India remained third most bullish consumer market in the world, the Nielsen global survey said.

Consumer confidence score in India in the third quarter was at 112 compared with 118 in the previous quarter.

Top two consumer market as per the survey are Indonesia

and Philippines with 120 and 118 score.

"Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism," Nielsen said in a statement.

As per the survey, seventy-six percent of online respondents indicated that India is going through an economic recession this quarter, up 25 percentage points from last quarter (51 per cent).

Commenting on the survey findings, Nielsen India President Piyush Mathur said: "Consumer sentiment in the country has been adversely affected by the devaluing rupee, inflation and negative reports on the economy."

However, despite fall in consumer confidence, discretionary spends have gone up. "The economic pressures are telling on the consumers, though their discretionary spending is high, largely owing to the festival season. This is complemented by deals and discounts that manufacturers and retailers activate during this time period, and thus ease their spending concerns," survey said.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 30, 000 respondents with Internet access in 60 countries.

The Nielsen Global Consumer Confidence Index was unchanged in the third quarter from the previous three months at 94, up 2 points from the same period a year earlier.

In the latest round of the survey, conducted between August 14 and September 6, 2013, consumer confidence increased in more than half (57 per cent) of global markets measured by Nielsen, compared to 45 percent in the previous quarter.

As per the survey, optimism over job prospects has dropped to 63 percent this quarter, from 72 percent last quarter. Job security is also the biggest concern for Indian online respondents, Nielsen survey said.

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