As per a global consumer confidence index study by Nielsen, India which was ranked second in first quarter of 2013 has now slipped to the third most optimistic country, after Indonesia and the Philippines.
Consumer confidence in India was indexed at 118 in Q2 2013, a two-point decline from Q1 2013 (120), and a one-point decrease from Q2 2012 (119).
"The dip in confidence over the last six months reflects the concerns of the devaluation of the rupee and the continuing inflation for urban Indians," Nielsen India Region President Piyush Mathur said.
"Consumers are also being cautious and are controlling expenses for essentials. However, they are relatively optimistic about the job market which can be the function of some sectors with more opportunities," Mathur added.
According to the survey, shifts in discretionary spending from last quarter indicate the guarded nature of consumers when it comes to spare cash. The second quarter is also the post-incentives, post-bonuses period, so the euphoria has settled, and planning for financial stability has been set into place by families.
As per the survey, seven out of 10 Indians (72%) are optimistic about their job prospects in the next 12 months, one percentage point below last quarter. The same period last year indicated higher optimism in job prospects at 77 per cent (Q2 2012), it added.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 29,000 respondents with Internet access in 58 countries.


Latest News  from Business News Desk