Reflects same levels after 4 years (131 in 2011)
Higher optimism levels on job prospects for the quarter
Mumbai – July 27, 2015 – India continues to lead the global confidence index for the quarter with a one point increase from last quarter to 131 followed by Philippines (122) and Indonesia (120). The Consumer confidence in urban India reflects levels last achieved in the first quarter of 2011.
Half of respondents (50%) polled that they feel India is still in economic recession, up six points from last quarter (44% in Q1 2015). However, three in five (61%) indicate that India will be out of the recession over the next 12 months.
The Nielsen Consumer Confidence Index measures perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with Internet access in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
In the latest online survey, fielded between May 11 – 29, 2015, over four in five (81%) urban Indian respondents indicated the highest level of optimism globally on job prospects in the next 12 months. Echoing similar trends from last year, same quarter (83% in Q2 2014).
“The optimistic trend in consumer sentiment continues, and this quarter reflects the highest levels since 2011. While this is positive new, discretionary spending levels are yet to see a huge transformation,” said Piyush Mathur, president, Nielsen India Region. “There are signs of a positive growth in consumer spending on consumer packaged goods, indicated by a slight increase in growth compared to the previous quarters. There has also been a gradual decrease in concerns on job security over the last few quarters along with interest rate cuts, and an increase in intention for home loans – thus enhancing the sentiment on the economy and portraying an optimistic picture for the future. Nevertheless, the next quarter will be critical as concerns around the monsoons continue to have a muted effect on consumption”.
Discretionary Spending & Savings
Over three in five (65%) online respondents polled indicated this is a good time to buy things they want and need, leading the global top ten countries for this parameter. These optimism levels are five percentage points higher than the same period last year (60% in Q2 2014).
When it comes to investing spare cash, 60% of online respondents in India indicated it is a good time to put spare cash into savings, a dip of four percentage points from last quarter (64% in Q1 2015).
The purchase intent for new technology products by urban online respondents stands at 48% this quarter. 44% indicate utilizing spare cash in shopping for new clothes, constant for the last three quarters. When it comes to creating a corpus of funds for the future two in five (39%) respondents indicated that they will invest in mutual funds, and 28 percent in a retirement fund.
There is a higher degree of caution when it comes to spending habits, 80% respondents have changed their spending habits to save on expenses, five percentage points higher than the same period last year (75% in Q2 2014). The top three avenues this quarter are saving on gas and electricity (46%), spending less on new clothes (43%), and cutting down on holidays and short breaks (35%).
Personal Finances, Concerns
79% urban Indian respondents indicated that the state of personal finances was good or excellent in the second quarter of 2015, at the same levels as same period last year (79% Q2 2014).
Outlook on jobs have improved, with only 17% of respondents indicating job security is the biggest concern, down by five percentage points from last quarter (22% in Q1 2015).
Other big concerns are sustaining a work-life balance (11%), followed by global warming (11%). Online respondents indicated that state of the economy (11%) , increasing food prices (8%) are second biggest concerns for the quarter.
About The Global Survey Of Consumer Confidence And Spending Intentions
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted May11-29, 2015 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 and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
Nielsen N.V. (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world’s population. For more information, visit www.nielsen.com.