Despite demonetisation, Indian consumers remained confident in Q4: Nielsen

Mumbai, Feb 21: For the second quarter in a row, India’s consumer confidence index remained high, topping the global list of countries on the same parameter, market research agency Nielsen said on Monday.

Data released by the agency shows that India’s consumer confidence index for the fourth quarter of the calendar year 2016 was 136, three points ahead of the score it achieved in the third quarter of 2016.

The increase in consumer confidence, said Nielsen, came at a time when the Government of India announced a ban on high-value notes, covered during the agency’s survey period, stretching from October 31 to November 18, 2016. 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 long-term outlook is bullish,” Basu said.

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

While 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, there were concerns articulated by them as well. A prominent one was job security, with 17 per cent saying they felt insecure about their jobs. Some 16 per cent surveyed also said that state of the economy was a worrying factor and another 14 per cent were concerned about terrorism.

65 per cent Indians interestingly 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.