Ten thousand consumers across 15 cities in India have given their biggest thumbs-down on confidence in the month of March, just ahed of the general the elections.
The Boston Analytics Consumer Confidence Index (now CNBC-TV 18 Boston Analytics Consumer Confidence Index), designed to measure consumer confidence in India on a monthly basis, has recorded its lowest value since its inception in January 2008.
The index for March 2009 stood at 73.5, a fall of 5.6 per cent from the February reading of 77.6. The base adopted by the index was 100 in January 2008. The index measures consumer opinion regarding the current state and future expectations of the macro economy, finance and consumption.
It has been showing a downward trend for 12 months since its first sharp fall in March last year. Declining confidence in household income and a gloomy mood on job security have hit sentiments.
The indexed employment component saw a 10.5 per cent fall in March, its sharpest since November 2008.
The “current situation confidence index” for March 2009 stood at 71.3, a decline of 5.8 per cent from February 2009’s 75.7. The “future expectations confidence index” also dipped in March by 1 per cent.
“The future expectations index is higher than the current situation index, signalling that the state of the economy will improve,” said Shirin Bagga, associate project manager, Boston Analytics.