This is the highest level of Consumer Outlook Index since December 2012, which was analysed on a monthly survey of 4,000 consumers across 18 cities.
Debopam Chaudhuri (VP Research, ZyFin Research) said, The third consecutive uptick in the COI is further evidence that the Indian economy has bottomed out. With consumers gaining confidence in the economy, we expect a more sustained recovery over the next couple of months, as aggregate demand rises.
The Consumer Outlook Index (COI) has been improving consistently since hitting an all-time low of 39 in October 2013.
The rise in COI is driven by better Employment Sentiment Index, which has moved back into optimistic territory, to 51.3 points. This jump, of 1.5 points, can be attributed to declining pessimism around the unemployment rate and job security, report reads.
The study claimS that a rising number of consumers believe that prices will not worsen, they are worried that interest rates will increase.
The Spending Sentiment Index dipped marginally by 0.9 points to 32.0. This decline, despite improving macro-economic sentiment, indicates that consumers are in wait-and-watch mode, report adds.