New Delhi: India has once again emerged as the most optimistic market, driven by its buoyant domestic consumption levels, but slowing growth and inflationary concerns could put pressure on consumer confidence for the year ahead, says a survey.
According to the latest global consumer confidence findings from Nielsen, a provider of information and insights into what consumers watch and buy, India remained the world's most optimistic market for the eighth consecutive quarter with a one point consumer confidence index increase to 122.
India was followed by Indonesia and the Philippines at 117 in the list.
Venkatesh Bala, Chief Economist at The Cambridge Group, a part of Nielsen said, "Buoyant domestic consumption also maintained confidence levels in the large emerging economies of India, Indonesia and Brazil. However, slowing GDP growth within emerging economies and inflationary pressures would suggest some degree of caution for the year ahead."
Elaborating further, Nielsen India Managing Director Justin Sargent said, "The stabilisation of India's consumer confidence metric is encouraging and the retention of the top spot globally reminds us of the inherent strength of the Indian economy, the savings mindset of the Indian consumer, and the positivity of consumer sentiment which has likely been helped by the recent cooling of inflationary pressure."
Meanwhile, the global consumer confidence increased in the December quarter led by the world's two largest economies - the US and China, but deteriorated in the euro zone countries.
Global consumer confidence increased one index point to 89, even as confidence levels in 24 out of 27 European markets witnessed a decline.
"While Europe's challenging economic conditions in the second half of 2011 bought renewed vulnerability and fragility to consumers and financial markets globally, some of the most positive news last quarter came from the world's two largest economies - the US and China - where confidence rebounded to Q1 2011 levels," Bala added.
Confidence levels declined in 35 out of 56 markets, while confidence rose in 12 markets and remained flat in nine, but shoppers are still cautious, the survey, conducted between November 23 and December 9, 2011, said.
Hungary was the world's most pessimistic market at 30 index points, followed by Portugal (36) and Greece (41), where quarterly confidence levels fell seven, four and 10 points, respectively.
"European markets accounted for nine of the 10 most depressed markets last quarter," the report said.
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