ZyFin, formerly known as BluFin – has announced the August numbers of its Consumer Outlook Index (COI) of India (earlier known as Consumer Confidence Index of India (CCI).

ZyFin is a financial information and content company that has introduced monthly economic lead indicators that track trends and provides analysis of consumer confidence, business cycle and sequential month on month GDP estimates

The index has fallen by 0.3 points registering a score of 40.5 in August. The number indicates rising pessimism on the part of urban Indian consumers towards the state of the Indian economy with 36% of respondents stating that economic conditions have deteriorated this month as against 27% in August 2012.

The Inflation Sentiment Index which was on an uptrend in the recent past but it registered a fall of 0.4 points from the previous month to the level of 27.2.

A major contributor to the downfall is the employment outlook which has been falling since February 2013. The Employment Index declined by 0.7 points over the last month to 49.1, its lowest since October 2011.

The buoyancy show by consumers towards increased spending has mitigated the fall in the overall index. The Spending Sentiment Index has been improving for the last three months recording a 0.3 point jump since July to reach 31.2 for the month of August.

“The spiralling rupee is one of the most important factors that is affecting inflation sentiment and dragging it down. Moreover the current economic slowdown along with bleak job market and a constant influx of news indicating fewer new jobs available in the job market are contributing to the consumer pessimism,” Rashid Bilimoria – CEO, ZyFin said.

After a decline of 1.2 points, the Present Situation Index is at 42.3 while the Future Expectations Index is stable at 39.7 suggesting deepening pessimism from a consumer stand point.

From a region-wise perspective, the COI has risen significantly in the South and stabilised in the West, owing mostly to improving Employment indices in these regions. The Northern and Eastern regions of India have shown reduced consumer confidence levels marked by weakening labour market outlook and worsening inflationary situation.

The August numbers of the ZyFin COI continue to reiterate the longstanding need of creating more job opportunities to provide impetus to spending, so as to strengthen consumer confidence levels across the country.

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