Indians were the most confident globally when it came to job prospects, personal finances and immediate spending intentions in the third quarter of 2016, according to global performance management company Nielsen.
“The Consumer Confidence Index score for India in Q3, 2016 has climbed five points to 133 from 128 in the previous quarter to reclaim the top spot on the global index. This is a bounce back to the same levels of optimism seen in Q1, 2016.
Following India are Philippines and Indonesia with scores of 132 and 122, respectively,” Nielsen said in a statement.
The Nielsen Consumer Confidence Index measured perceptions of local job prospects, personal finances and immediate spending intentions in 63 countries.
Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
“The latest score for India is the highest historically for the quarter, and reiterates renewed optimism levels as well...The positive sentiment is helped by delayed but good monsoons, controlled inflation, positive economic outlook and onset of the festive season,” Nielsen President-South Asia Prasun Basu said.
As per the report, sentiment levels of Indian on personal finances have gone up by six percentage points to 84 per cent this quarter (78 per cent in the second quarter of 2016). Over two in five (81 per cent) respondents indicate optimism over job prospects, up by two percentage points from last quarter.
Recessionary sentiment is lower by four percentage points when compared to the same quarter last year (50 per cent now, versus 54 per cent in third quarter of 2015).
However, job security (17 per cent) continues to be the ‘biggest concern’.
This quarter ‘terrorism’ follows as the biggest concern among 10 per cent of the respondents - up five points from last quarter (5 per cent in second quarter of 2016).
As per the report, 68 per cent urban Indians indicated it’s a good time to buy things they want and need over the next 12 months.
“Putting into savings (66 per cent), spending on holidays and vacations (56 per cent), purchase of new technology products (52 per cent) and new clothes (48 per cent) have been highlighted as avenues for utilizing spare cash,” it said.
India has been achieving high rates of growth for most of the 25 years since the launching of economic reforms in 1991.