Consumer confidence in India in the third quarter fell from the previous quarter, but the country remained the third most bullish consumer market in the world, a global survey by Nielsen said.
India’s consumer confidence score was 112, compared with 118 in the previous quarter.
The top two consumer markets as per the survey are Indonesia and the Philippines, with scores of 120 and 118, respectively.
"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, 76% of online respondents indicated that India is going through an economic recession this quarter, up 25 percentage points from the last quarter (51%).
Commenting on the survey’s 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 the 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.