Despite demonetization, India's consumer confidence hits 10-year high

Consumer confidence in India rose to the highest level in 10 years in the December quarter despite demonetization, Nielsen’s global consumer confidence index report showed on Monday.
India remained as the most confident country in terms of job prospects, personal finance and immediate spending intentions in the fourth quarter of 2016. India’s consumer confidence score climbed to 136, up three points from the previous quarter and the highest level in 10 years.
“The three-point increase in the confidence index in the fourth quarter reflects strong economic and commercial performance at the end of the third quarter and at the beginning of the fourth quarter, further benefited by the timing of the festive season, when confidence typically rises,” said President, Nielsen South Asia, Prasun Basu.
More than eight in 10 Indian respondents in the latest survey were confident about their personal finances (85 per cent) and job prospects (84 per cent) in the coming year, and nearly seven in 10 (69 per cent) said they believe it is a good time to spend.
“During the survey period, the Indian Government announced demonetization of high-denomination notes. While this move created short-term constraints for consumers, the long-term outlook is bullish–a sentiment clearly echoed in other Nielsen research and by a recently released study by the Reserve Bank of India–thus strengthening the overall confidence levels for the next 12 months,” Basu added.
As many as 70 per cent urban Indians indicated that it’s a good time to buy things they want and need over the next 12 months. While 65 per cent respondents said savings are the best way to utilise spare cash, 54 per cent said they would prefer to spend on technology and 53 per cent chose spending on holidays and vacations.
When it comes to household expenses, this quarter 78 per cent of respondents have indicated a change in spending to save on household expenses, five points lower than last quarter.
The survey, established in 2005, polled more than 30,000 respondents with internet access in 63 countries to gauge perceptions of local job prospects, personal finance, immediate spending intentions and related economic issues of real consumers around the world.