What may be viewed as a big boost for the Modi government, a recent survey has revealed that consumer confidence is very optimistic in India. According to the Mastercard Index of Consumer Confidence (H2 2017) survey, consumer confidence in India remains high with consumers indicating a ‘very optimistic’ outlook over the next six months. India (84.6 points), Bangladesh (80.4 points) and Vietnam (89.5 points) are three Asia Pacific markets to observe a ‘Very Optimistic’ sentiment.
As per the survey, consumer confidence in India has remained stable over the last six months. The market rated a ‘Very Optimistic’ sentiment in four out of the five components – Employment (82.2 points), Economy (84.6 points), Regular Income (86.5 points) and Stock market (84.5 points). Even outlook towards Quality of Life (85.1 points) remains high, with stable growth (+1.7 points) from the previous Index findings.
Overall, in Asia Pacific, rising economic growth, increased travel and greater intra-regional economic cooperation fueled the region’s confidence at 68.5 points. The Index indicates that Asia Pacific millennials (aged 18 – 29 years) are very confident about the next six months (72.9 points), while the older generation (aged 30 and above) are tempered in their outlook towards the future (66.7 points).
Since the latter half of 2016, optimism across both age groups in the region has risen; consumers aged above 30 tracked a 6.3 point jump in optimism, while people aged below 30 tracked a 5.0 point lift. These lifts are reflected across buoyant consumer sentiment towards the stock market, employment and economic performance. In particular, stock market optimism tracked a +10.2 point growth amongst people aged under 30 years.
Improvement in consumer sentiment has been recorded in eleven out of eighteen Asia Pacific markets. Stable movement is seen in Australia (+4.8 points), Myanmar (+4.4 points) and Thailand (+2.1 points). Some improvement is tracked in Philippines (+6.9 points), Taiwan (+8.6 points), Malaysia (+6.2 points) and Singapore (+5.3 points) while there is significant improvement in New Zealand (15.1 points). Declines are tracked in only four out of eighteen Asia Pacific markets, with slight dips in Indonesia (-3.1 points) and Cambodia (-1.9 points). Significant deterioration is tracked in South Korea (-18.4 points).
Age-related sentiment varies most strongly across Asia Pacific’s more developed markets. The greatest variations in confidence between people aged below 30 and above 30 are felt most strongly across Taiwan (56.5 points vs. 39.7 points), Singapore (66.1 points vs. 50.0 points) and New Zealand (76.3 points vs. 63.0 points).
The Mastercard Index of Consumer Confidence measures consumer sentiments across five components: Economy, Employment, Stock Market, Regular Income and Quality of Life.