Indian consumer confidence level on the rise: BluFin
Indian consumers' confidence level rose in November owing to increase in spending due to festive season as well on expectations of improved job security, says a study by financial services provider BluFin.
The BluFin's Consumer Confidence Index (CCI) grew by 3.4 points from the previous month to 41.6 points in November despite inflationary concerns. This was the highest increase since October 2011.
The index is a key 'aggregate' indicator that assesses the pulse of urban Indian consumers with regard to the economy, spending behaviour and employment. The index reflects pessimism at below 50 score and optimism above that.
"... increase in the CCI is noteworthy as it indicates Indian consumers' upbeat response to the ongoing festive season. The rising score since past two months and the slight uptick compared to the previous year could be an early sign of the consumer sector eventually bottoming out and making way for a recovery," BluFin CEO Rashid Bilimoria said.
"However, the current positive trend will be validated provided this upward pattern persists in the coming months.
Moreover, it's important to note that the inflation sentiment index continues to trickle reaching to the lowest level in the last two quarters, hence, slowing the overall progress of the CCI," he added.
A sub index, which rates spending sentiment, improved by by 1.8 points to 26.9 in the month of November. The uptick in the index is primarily due to the festive season that generally encourages consumer spending. Nevertheless, the level still indicates that consumers
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