India continued to lead the global consumer confidence index in the third quarter with 131 points same as the previous quarter.
It is followed by United States (119 points), Philippines (117) and Indonesia (116).
Although more than 54 per cent polled said India’s economy is still in slowdown zone, its consumer confidence score remained intact at 131, said global information and insights provider Nielsen.
In the June quarter, 50 per cent people had expressed that they feel India is still in ‘economic recession’.
“However, this quarter 67 per cent indicate that India will be out of the recession over the next 12 months, as against 61 per cent last quarter,” the report said.
According to Nielsen India Region senior vice president Roosevelt D’Souza, this year the Indian consumer continues to be resilient and hopeful when it comes to economic outlook.
“What is interesting is that discretionary spending is looking up, even when compared to the same period last year amongst urban respondents. At the same time, there is a cautionary tone as is evident in their savings intent,” he said, adding that ongoing festive season may lend buoyancy, though smart marketing and attractive deals.
However, he added: “Volatility still exists in consumer sentiment owing to deficit monsoons, and uncertainty in certain pockets when it comes to consumption.”
Nearly two third online respondents indicated this is a good time to buy things they want and need, once again leading the global top 10 countries for this parameter in the quarter.
“These optimism levels are six percentage points higher than the same period last year (59 per cent in Q3 2014),” it added.
Moreover, there is an uptick in intent on utilisation of spare cash, as 70 per cent of online respondents have indicated they will invest in savings this quarter, followed by new technology and holidays and vacations with 56 per cent respectively and 50 per cent on new clothes.
“Nearly two in five respondents (37 per cent) are looking to invest in retirement funds this quarter,” it said adding that discretionary spending has seen a fillip from the same quarter last year.
“In Q3 2014 – 61 per cent indicated they will invest spare cash in savings, 44 per cent in new technology projects, 43 per cent on new clothes, and 42 per cent on holidays and vacations,” it added.
Over 4/5th of respondents (83 per cent) have changed their spending habits to save on expenses, continuing a trend of caution when it comes to spending habits.
Compared to last year, the avenues of saving cited are primarily gas and electricity (54 per cent), spending less on new clothes (48 per cent), and cutting down on telephone expenses (37 per cent) by respondents polled online.
“Over two in ten (23 per cent) respondents indicated they will cut down on smoking to control spending habits, even when conditions improve,” the report added.