“The urban consumer in India is clearly telegraphing significant concern about the future of the Indian economy,” Sam Thomas Director of Research and Development Boston Analytics.
BACSI (Boston Analytics Consumer Sentiment Index ), a monthly barometer of the country’s consumer opinion on current state and future expectations of the economy, household financial conditions and consumption, registered a decline of 3.5% in August 2008. Boston Analytics is a leading knowledge services firm.The index number in August 2008 at 89.9 was 3.5% lower than the previous month’s index number of 93.2. The decline was primarily on account of fall in respondents’ confidence in the economy and in employment conditions, said the report.The index number which addresses variables reflecting the nation’s economic conditions is arrived at after coducting a survey of about 4,550 respondents residing in Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Chandigarh, and Nagpur.”Inflationary fears appear to be the major driver of the pullback in consumer confidence,” the report said. Although, consumer sentiment related to inflation improved in July, 2008, there was a significant drop in August, 2008.”Observation and expectation of increasing unemployment combined with decreasing confidence in creating alternative means of employment has negated the effect of increasing job security leading to a marginal decline in the BACSI Employment Sentiment Index,” the report added.”Despite inflationary pressure, consumer spending remains strong in Delhi, Mumbai, Chennai and Hyderabad, while respondents in Kolkata, Chandigarh and Nagpur have not reported ambitious shopping plans,” the report added. (Agencies).
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1 response so far ↓
Anil Dogra // Sep 15, 2008 at 10:18 am
Our Consumer confidence in India, never grows slowly, and never comes down slowly. It goes up steeply and falls down steeply. Its all because, we are basically, a land of lazy punters, brokers, middle men, and game-players. We admire our children to become big MBAs, and then become no more than financial punters. Start earning big salaries, without producing any goods or services, that can sustain such revenues, in the longer run. Not producing anything worth its while. No efforts to encourage and create products and services, that render real value , so as to become national and global brands . Our system and our education, does not encourage that. So the Consumer confidence, is benched on a flaky ground, on borrowed funds, which are part of short-term money games, and nothing more. We should educate and encourage our moneyed and educated class to take more diversified risks and not follow a beaten path. Then only, we shall hit upon business models, that truly can become national and global cash cows. The confidence then, shall never rise like a miracle nor fall like a whimper. Amen.
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