India leads in Global Confidence Index, notes Nielsen study

02 Feb,2015

By A Correspondent

 

Consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy has found that India continues to lead the global confidence index for the quarter with a three point increase from last quarter followed by Indonesia and Philippines. The Consumer confidence in urban India rose to a score of 129 in Q4 2014 – a three point increase from last quarter (126 in Q3 2014), and a 14 point increase from the last year’s index, same quarter (115 in Q4 2013). India is followed by Indonesia and Philippines with a score of 120 each.

 

In the latest online survey, conducted Nov. 10-28, 2014, over four in five (82 per cent) urban Indian respondents indicated the highest level of optimism globally on job prospects in the next 12 months, followed by Indonesia (73 per cent) and Philippines (73 per cent). In the same quarter last year 70 percent (Q4 2013) were optimistic about their job prospects.

 

“The urban online consumer in India ended the year far more optimistically as compared to last year, and even last quarter and ends on an encouraging note. The increased consumer sentiment is also aided by lower inflation rates and the positive economic environment and development initiatives led by the new government that have been instrumental in driving the India growth story,” said Piyush Mathur, president, Nielsen India Region. “This uptick in confidence is echoed across sectors – the fast moving consumer goods is industry is looking to grow by double digits in CY 2015, credit card penetration is rising, home loan disbursement in higher than in the third quarter, auto sales are also improving”.

 

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with Internet access[1] in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. The latest results reflect an outlook of cautious optimism, as every region’s consumer confidence score improved compared to the previous quarter.

 

Discretionary Spending & Savings

Over three in five (61 per cent) online respondents polled indicated this is a good time to buy things they want and need, two percent rise from last quarter (59 per cent in Q3 2014). From the same time last year good time to buy things they want and need has gone up by 12 percent (49 per cent in Q42013).

 

When it comes to investing spare cash, 62 percent indicated it is a good time to put spare cash into savings. Half of respondents polled purchasing new technology products, up 11 percent from Q4 2013.

 

“There is a stark increase in the sentiment amongst urban affluent consumers from last quarter last year, to the same time period this year. If we focus on 2014 – we notice a steady uptick in discretionary spending buoyed by the lower inflation. The consumer however continues to be cautious and is looking to close the year on a balanced note”, said Mathur

 

Personal Finances, Concerns

Seventy-eight percent urban Indian respondents indicated that the state of personal finances was good or excellent in the fourth quarter of 2014, six percentage points up from the same time last year (71 per cent in Q4 2013). The top concerns are job security (21 per cent), sustaining a work-life balance (12 per cent), followed by state of the economy (10 per cent).

 

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