Consumer sentiment remains strong despite note ban

India’s Consumer Confidence Index remained high for a second quarter, topping a global list, Nielsen said on Monday.

Data released by the agency showed that India’s Consumer Confidence Index for the fourth quarter of calendar year 2016 was 136, three points ahead of what it scored in the third quarter of 2016.

The increase in consumer confidence, said Nielsen, was despite the government announcing a ban on high-value notes. The government had announced demonetisation on November 8. The agency’s survey period stretched from October 31 to November 18. Over 30,000 online respondents from 63 countries were polled as part of the survey, the agency said.

Prasun Basu, president, Nielsen, South Asia, said the increase in confidence reflected that consumer sentiment remained strong despite demonetisation. “While the ban on high-value notes created short-term constraints for consumers, the longterm outlook is bullish,” Basu said.

Some of the other countries figuring prominently on the index this quarter were the Philippines and the US at two and three, respectively. Their scores were 132 and 123, Nielsen said. Indonesia, which normally figures among the top three, was pushed to number four this quarter, with a score of 120, two points lower than its score in the third quarter.

Indians, said Nielsen, felt confident about spending in the fourth quarter, with 70 per cent in urban areas saying this was the best time to buy. But there were concerns, too. A prominent one was job security, with 17 per cent saying they felt insecure about their jobs. Some 16 per cent surveyed said the state of the economy was a worrying factor and 14 per cent were concerned about terrorism.

About 65 per cent Indians choose to save spare cash, while 54 per cent said they would buy new technology products and 53 per cent said they would go on a vacation.