Consumer confidence level in India drops in Q3: Nielsen

Consumer confidence level in India dropped by two points during the third quarter of this year with euphoria around new government at the Centre settling down, although it continues to be the most optimistic nation, global information and insights provider Nielsen has said.

As per a global consumer confidence index study by Nielsen, India retained the top spot with a index score of 126, followed by Indonesia (score of 125) and the Philippines (score of 115).

Consumer confidence in India was indexed at 128 in Q2 2014. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism

"In India, overall, the confidence index continues to hold near its previous levels with the euphoria around the recently elected government settling down," Nielsen India Region President Piyush Mathur said.

"The consumer in India is in the middle of a festival season, and so spending will likely be higher than previous quarters due to gifting and entertaining. Besides traditional offline retailers, e-commerce is gaining traction for the urban affluent shoppers in India and online retailers have been spurring the market with discounts to fuel this movement," he added.

As per the survey, three in five (59%) online respondents polled indicated that this is a good time to buy things they want and need, down by one percentage point from the last quarter.

Seventy-six per cent indicated that the state of personal finances was good or excellent in the third quarter 2014, up from 75% in Q2.

However, the top concerns amongst respondents continues to be job security (21%) and the state of the economy (11%).

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 30,000 respondents with Internet access in 60 countries.