Indian consumers remained the most optimistic in world in the January to March 2011 quarter, according to the 51-country online survey across 28,000 respondents by Nielsen to calculate its Consumer Confidence Index (CCI). The survey tracks factors such as confidence in the economy, jobs, personal finances, savings, concerns, purchase behaviour and intent, to arrive at the CCI. CCI levels above and below a baseline of 100 indicates degrees of optimism and pessimism.
Indian consumers registered 131 points on the CCI in Jan-March, the same as the previous quarter, even as the global average went up by 2 points in the same period to 92 points. The Indian CCI has remained consistently high over the last five quarters.
Mr Justin Sargent, MD, Consumer, India, The Nielsen Company, said, “If the consumer confidence levels among consumers have remained flat over the last quarter, it is largely due to global factors of weaker equity markets, higher commodity prices and overall weaker global recovery, compounded by rising domestic inflation.”
Seven of the 10 most optimistic countries by CCI are in the Asia Pacific region, with India being followed by Saudi Arabia (118) and Indonesia (116). Nine of the 10 most pessimistic countries by CCI were European, with the top five being: Portugal (39), Hungary (41), Greece (45), Romania (46) and Croatia (47). Dr Venkatesh Bala, Chief Economist at The Cambridge Group, (part of Nielsen), noted, “In the last 18 months, we have seen a clear divergence in how regions and countries are emerging from the global recession and this trend has become even more pronounced in the first quarter for better or for worse.”
Of the respondents, 61 per cent believed that it was a good time to buy things, compared to 56 per cent last quarter. 72 per cent claimed to have changed spending habits to save on household expenses. On reductions, respondents claimed to have cut down on fuel and electricity bills (53 per cent), out-of-home entertainment (37 per cent), telephone expenses (40 per cent), and holidays and short vacations (36 per cent).
Food prices
Indians are most concerned by increasing food prices (14 per cent). Globally, Chinese respondents are most worried about a hike in food prices (27 per cent).
Among concerns of Indian respondents for the next six months is rising fuel prices (up to 10 per cent from 4 per cent the previous quarter). The survey was conducted between March 23 and April 12, even before the latest fuel hike came into effect.