India has touched the top spot in consumer confidence among the 60 countries measured in Nielsen’s Global Survey of Consumer Confidence and Spending Intentions in the second quarter (April-June) of 2014.
The country’s ranking increased seven index points to 128, surpassing the 123 logged by Indonesia, which previously held the top spot for five consecutive quarters.
The Nielsen consumer confidence index measures perceptions of job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
“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,” he added.
India’s job sentiment improved 20 percentage points from the third quarter of 2013, as 83% of Indian consumers said they feel optimistic about future prospects, the survey revealed.
According to the Nielsen findings, global consumer confidence increased one index point to 97 in the second quarter, marking the highest level since the first quarter of 2007. This forward momentum comes after a stagnant 2013, when confidence was stubbornly stuck at 94 for three out of four quarters, Nielsen said.
Confidence was highest in the Asia-Pacific region, which held steady from the first quarter with a score of 106, whereas North America (103) and Europe (77) reported consumer confidence increases of three and two points, respectively, from the first quarter.
Among other Asia-Pacific countries, while confidence increased in the Philippines (120) and Malaysia (93), China held steady for a third consecutive quarter at 111.
“In China, per capita spending continues to grow with the increase of disposable income and as the government transforms the country’s investment-driven growth strategy to one that is consumption led,” said Yan Xuan, president of Nielsen Greater China.