Consumer confidence in urban India jumped seven points in the second quarter of 2014 to an index score of 128 (121 in Q1 2014). This consumer confidence index score brings India back to the top spot on the global index after five quarters. Indonesia (123) shifts to second place and is followed by Philippines (120).These are consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy.
“Consumers in India have indicated increased levels of confidence in the second quarter when the country’s general elections were taking place in the country,” said Piyush Mathur, president, Nielsen India. “This buoyancy is yet to translate into increased consumption across sectors. Despite the ongoing inflationary trend and expectations of a poor monsoon, consumers are likely to open their purse strings as we head into the festive season in response to savvy marketing stimulus. The annual budget announced by the new government reveals a positive outlook for business, and we expect this to reflect in consumer sentiment in subsequent quarters as well. The budget, which incorporates impetus and incentives for rural, infrastructure, manufacturing, as well as better income tax exemptions for consumers, should bode well, but it will need to be watched closely.”
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 [Refer Note 1] in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.
In the latest round of the survey, conducted May 12–30, 2014, consumer confidence increased in 52 percent of markets measured by Nielsen, compared to 60 percent in the previous quarter (Q1 2014).
Discretionary Spending & Savings
Three in five (60%) online respondents polled indicated that this is a good time to buy things they want and need, up by six percentage points from last quarter (54% in Q1 2014).
The intention of online respondents investing spare cash in savings is 64 percent, while half of those polled are looking to invest in new technology. More than a third (31%) indicated they would invest in a retirement fund, and mutual funds (36%).
75 percent respondents have changed their spending habits to save on expenses, a six percentage point decrease from last quarter (81%). The top three avenues for saving are spending less on new clothes, (46%), gas and electricity (44%), and cutting down on holidays and vacations (35%).
Job Prospects, Concerns
Over four in five respondents (83%) are optimistic about job prospects, over the next twelve months – a nine percentage point increase in sentiment from last quarter. India is the most optimistic globally about local job prospects over the next 12 months and is followed by Philippines (77%) and Indonesia (76%).
Seventy –nine percent indicated that the state of personal finances was good or excellent in the second quarter 2014, up from 76 percent in Q1.
The top concerns continue to be job security (23%) and the state of the economy (20%). The concern on the state of the economy has increased by five percentage points over last quarter (15%).
In conjunction with the second-quarter index release, Nielsen is unveiling a new interactive data visualization tool based on nine years of historical global consumer confidence data, which spans 60 countries and represents a global online population of some 2 billion consumers. The Nielsen Global Consumer Confidence Trend Tracker allows users to select a variety of different data points related to consumer economic sentiment to create dynamic visualizations by region, country, issue, and time period.
About the Nielsen Global Survey
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted May 12-30, 2014, and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users, is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60-percent Internet penetration or 10M online population for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
Nielsen (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA, and Diemen, the Netherlands. For more information, visit www.nielsen.com.
[Note 1] While an online survey methodology allows for tremendous scale and global reach, it provides a perspective on the habits of existing Internet users, not total populations. In developing markets where online penetration has not reached majority potential, audiences may be younger and more affluent than the general population of that country.
Additionally, survey responses are based on claimed behavior, rather than actual metered data.