In the third quarter of 2010, Indian consumers have expressed a stable level of confidence, according to Nielsen’s Consumer Confidence Index. After steadily increasing in the first two quarters of 2010, confidence levels have stabilised in the third quarter.
At 129 index points, consumer confidence in India is 12 points ahead of the second highest Thailand’s 117 index points in Q3. Nielsen’s Global Consumer Confidence Index tracks consumer confidence, major concerns and spending intentions among 26,000-plus internet users in 53 countries. Global consumer confidence fell in Q3 to 90 index points as consumers’ hopes for a full economic recovery this year fades in most parts of the world.
“Indian consumers are confident about their economy and have shown similar confidence levels as the second quarter of 2010. However, these levels have not increased like they did in the first two quarters of 2010. This indicates stabilisation in the trend and also reflects the fact that consumers are wary of the uncertainties that surround global economic conditions,” said Justin Sargent, MD – consumer, The Nielsen Company.
Ninety one per cent of Indians are optimistic about their job prospects in the next twelve months. The confidence in job prospects also translates into optimism on the financial front, with 83 per cent Indians being optimistic about their state of personal finances in the next twelve months, the highest percentage globally. Job and personal finance optimism translates to higher spending. In Q3, 59 per cent of Indians were optimistic that it is a good time to buy the things they want and need over the next 12 months.
“Indians appear to have loosened their purse strings compared to previous quarters. While some of this propensity to purchase can be attributed to the advent of the festive season, a combination of factors will lead to greater spending and more enthusiastic buying behavior as marketers tap into the confidence that the Indian consumer seems to be exuding,” said Sargent.
After meeting their essential living expenses, 65% (2% higher than Q2) Indians put their discretionary income into savings, then into investing in stock shares and mutual funds, followed by the purchase of new technology, which registered two percentage points growth in Q3 over Q2.