India tops global confidence index in Q4: Nielsen

But continues to show signs of recessionary sentiment

For the fourth quarter in a row, India has topped global consumer confidence index as measured by research agency Nielsen in 2015. But the catch is that it continues to show signs of a recessionary sentiment for the third straight quarter.

Nielsen's just released report shows India's consumer confidence index for the fourth quarter of 2015 was 131, ahead of the Philippines (117), Indonesia (115) and Thailand (114). But 50% of people polled feel India is still in economic recession, implying recessionary sentiment is strong.

While this is lower than the 54% reported in the third quarter of 2015, it is equal to the figure reported in the second quarter and higher by six percentage points to the figure reported in the first quarter.

Nielsen says that this is a sign of weakness owing to external factors.

Nonetheless, most key global economies appeared to be pessimistic in the fourth quarter, pointing to depressed market conditions. China's confidence index for the fourth quarter, for instance, was 107, up one point only from the third quarter.

Countries such as the UK, USA, Germany and Japan all showed quarter-on-quarter confidence declines, indicating the consumer's state of mind. UK's confidence index was 101, USA, 100, Germany, 98, and Japan, 79, for the quarter under review.

India a bright spot

Nielsen says Indians remain the most optimistic in the world about job prospects and personal finances, with 80% and 82% respondents respectively saying they were confident of these attributes.  But job security and state of the economy were top concerns for Indians in the fourth quarter, Nielsen said.

When it came to spending habits, 65% of Indians said it was a good time for purchases, while 63% said they would invest in savings. 79% respondents said they had changed their spending habits to save on household expenses and 44% said they would spend less on clothes.