Impact of Recession on India:Customer Confidence Index Dips

This is part of multiple posts that I have been doing on impact of recession on Indian Economy and Indian Consumer Demand.

At the heart of current consumer behaviour or reluctance to purchase fresh goods, whether it is real estate, cars or consumer durables is consumer confidence. That’s the problem because what’s going around us has led consumers to a complete freeze here or in some cases in urban India complete freeze out.

The Customer Confidence Index (CCI) is defined as:

 the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending. 

The Consumer Confidence Index is designed to reflect the aspects of the Indian economy lik employment, inflation, savings, spending and real estate through the eyes of the Indian consumer. Boston Analytics Consumer Confidence Index has come down by 3% at 77.6 in February. The Confidence Index is down 22.4% since its inception in January 2008.

Analysis:

The level of job security on the part of consumers is remarkably weak and from the viewpoint of consumer spending the plans of spending on durables in particular are very weak and this covers vehicles, housing and white goods in general and that are alarming statistics because they are not expecting to get it better either. That is showing up in that number which is the lowest in the last 14 months or so.

source CNBC

Related Read:

Impact of Recession on Indian Consumer Demand

Impact of Recession on India A Study by Indian Labour department