Indian consumers’ confidence slides

According to ACNielsen, the Indian consumers’ confidence for 2007 stands at 135 points, two points down from the index charted in February 2007. This is the fifth time that Indian consumers are leading the list in this study conducted twice a year by The Nielsen Company.

The survey polled 26,486 Internet users in 47 markets from Europe, the Asia Pacific, North America and West Asia about their job prospects, the state of their own finances, and what they do with their spare cash.

A significant number of Indians are happy with the current work situation. According to the survey, 93 per cent of Indians polled consider their job prospects to be “excellent or good” over the next 12 months. The high consumer confidence is also reflected in the way consumers view the state of their personal finances in the next 12 months with nine in 10 Indians feeling “excellent” or “good” about it. Indians are also quite optimistic and confident about the future of the economy, with 61 per cent feeling that it is an “excellent” or “good” time to buy things that they want or need.

Says Sarang Panchal, executive director, customised research, South East Asia for ACNielsen, a division of The Nielsen Company, “Indian consumer confidence is in line with the release of the country’s latest GDP figure of 9.4 per cent – the highest growth India has posted in 18 years. Naturally, we see 45 per cent of Indian consumers surveyed rating their job prospects in the next 12 months as excellent.”

The survey also shows that Indians have investment high on their mind. Around 53 per cent of Indians said that they would invest in the stock market or in mutual funds with their spare cash. Increasingly, Indians are also travelling more and this finds its way to the third slot, with 39 per cent Indians voting for it as a means of “spending” their extra money.

There are a few concerns as well. Despite the high confidence levels and a booming economy, the major concern for most Indians still seems to be the country’s economy. Some 46 per cent cite this as their biggest and second biggest concern. Health comes second, with 31 per cent Indians considering it as their biggest and second biggest concern.

The continuingly upbeat Indian consumers have presented a contrast with the world’s most pessimistic consumers, who hail mainly from Portugal, Korea, Japan, Taiwan and Hungary, and are not so upbeat about the job market, the state of their personal finances or readiness to spend.