Indian consumer confidence declines, but still 2nd in world

New Delhi, May 1: Indian consumer confidence dropped in Q1 2013 to become the second after Indonesia due to the “environment around the-m”, according to a survey by market insights and information provider Nielsen.

According to the survey, Indian consumer confidence index dropped by one point to 120 in the first quarter of 2013 after topping the global list at 121 in fourth quarter of 2012.

“The last year has seen shifting sentiment on confidence, where consumers are feeling good about themselves, but not the environment around them,” Nielsen India president Piyush Mathur said.

As per the survey, 60 per cent of respondents in India indicated that they would put spare cash into savings

He said the finding highlighted a contradictory nature of the urban Indian consumer. “On one hand (Indian consumers are) cautious about the state of the economy, and middling company performance, but at the same time (they are) indicating a higher discre- tionary spending for the year,” Mr Mathur added.

Indonesia led the global index in the first quarter of the year, measuring at 122, up five positions from the fourth quarter of 2012.

Philippines and Thailand were ranked third and fourth in the list, with 118 and 116 points, respectively. Brazil came fifth in the list, holding on to its previous position.

As per the survey, 60 per cent of respondents in India indicated they would put spare cash into savings, up six per cent from last quarter. Forty-two per cent said they would invest in new technology and products, up from thirty nine per cent last quarter. — PTI