Fall in Consumer Index witnessed for the First time in Nine Quarters
Date: Wednesday , August 01, 2012
A fall in employment sentiment and cowed spending behavior resulted in a fall in the consumer confidence in India for the first time in nine quarters. This has been revealed in a latest edition of Nielson global consumer confidence index.
The country registered a decline of four points currently at an index of 119, from the first quarter of 2012. Piyush Mathur, Nielsen India region President, said that the concern lies in the rising inflation and fuel prices which are a direct hit to wallet of a common man. At the same time the fall of a rupee combined with low GDP has increased the anxiety. As per the report, the average global confidence index has decreased by three points to 91, which is the lowest that has been hit since last seven years since Nielsen started compiling data.
Elaborating, Mathur said that there is some correlation between GDP and consumer confidence. In the second quarter of 2011 our GDP has been deteriorating below seven percent mark. Consumers are spending more on essentials like grocery and cutting down on other unnecessary comforts which were being given prime importance earlier. Electricity and gas bills are trying to be reduced. Home loans and insurance are given a second thought before finalizing on the deals as the soaring prices have haunted consumers to concentrate on their priorities currently.
India still ranks at the top when it comes to job prospects, but the index has lowered to seven points to 77 during the quarter. Anything below 100 points indicates pessimism and it is prevalent in India currently. As many as 53 percent Indians feel that recession exists in the country now and it is going to last for a year, which is also another scare for job security which tops the list of worries among Indians.