Indian consumer confidence index

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Consumer confidence is a key driver of economic growth and is widely regarded as the main economic indicator of household expenditure for consumption. Consumers tend to increase consumption when they feel confident about the current economic situation and the future of the country and their own financial condition. In economies like India and the US, where personal consumption accounts for more than 60% and 70% of GDP respectively, consumer confidence has a very significant impact on the economy. Measuring it can provide critical insight into the prospects for economic growth. The consumer sentiment index is an important tool used by global investors and will be a great help for individual and institutional investors in India.

Video Indian consumer confidence index

Methodology

The ZyFin Consumer Outlook Index (COI) was India's first statistically strong, strong, and monthly index of first-ever consumer sentiment. COI is designed to provide a reliable insight into India's national and regional economy. Released once a month, the index is calculated from a monthly survey of 3,000 consumers in 11 cities across India. The ZyFin Consumer Outlook Index was developed by a team of financial economists and statisticians led by Dr. Sam Thomas, Ph.D. and Debopam Chaudhuri, Chief Economist at ZyFin. This is a barometer to assess macroeconomic conditions and their implications for the market in the near future..

Aggregate index

Consumer Outlook Index (COI)

Based on the question of respondent sentiment covering various significant economic factors (both current and expected).

Present Situation Index

Based on questions relating only to the current respondent's sentiments on various factors that are economically significant.

Future Expectation Index

Based on questions relating only to future respondent sentiments on various factors that are economically significant.

Sub-index

Spend the Sentiment Index

1. Willingness to spend on major consumer goods
2. Willingness to spend to buy a vehicle
3. Willingness to spend to buy a house

It measures the overall consumer expenditure plan on needs and discretionary purchases for the next few months. With a six-month lead on the Consumer Durables BSE Index, it is useful in predicting sales growth for consumer goods, vehicles and homes.

Job Sentiment Index

1. Current and expected sentiment in the unemployment situation
2. Current and expected sentiments on personal work security (members/family/friends))

This reflects the consumer's perception of the expected and expected employment situation in India. This is a strong indicator of the service sector prospects.

Inflation Sentiment Index

1. Current and expected sentiment at interest rate
2. Current and expected levels of the price of all average items

It tracks price rises that consumers perceive and expect. This shows a strong correlation with interest rate movements in the economy.

Basic Needs Expense Index

It maps the consumer's shopping trend to basic needs and offers a strong proxy for inflation in the field. It can be used in conjunction with the Inflation Sentiment Index to forecast inflation and interest rates in the economy.

Durables Spending Index

It captures consumers' plans to buy consumer goods, providing an opportunity to project sales six months earlier.

Vehicle Output Index

The Vehicle Expenditure Index indicates consumer plans to purchase passenger vehicles in India over the next 6 months, providing a powerful tool for forecasting demand.

The index of real estate spending

It measures consumers' plans to buy a home for the next six months to a year

Borrow Leisure Index

Borrowing the Convenience Index quantifies the convenience of consumers in borrowing to finance large ticket products, such as homes, vehicles, and consumer goods. In relation to the spending index, it is a good predictor of demand for retail lending.

Maps Indian consumer confidence index

Data

At 39.9 for March 2012, the Aggregate CCI Index reflects pessimism about the economy among Indian consumers. A CCI score below 50 reflects pessimism and more than 50 reflects optimism.

In addition to Aggregate score 39.9, other highlights from CCI March 2012 include:

1. CCI Aggregat has the lowest score of 35.8 in December 2011. Since then, there has been a positive trend but consumers remain pessimistic.
2. Concerns about the future are particularly prominent in the minds of consumers, as demonstrated by the CCI 37.6 Future Hope CCI score in March 2012, lower than the CCI aggregate score of 39.9.

Instead, the Current Situation Score of 45.7 is above the Aggregate CCI in March 2012.

1. While the three sub-indices mentioned above show Pessimistic Sentiment, the Inflation Sentiment Index, at 23.5 in March 2012 is the biggest obstacle to overall consumer sentiment.
2. Respondents in South India showed slightly more positive sentiments than respondents in other areas, but they also remained pessimistic.

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See also

• Consumer confidence
• Consumer confidence index

src: qz.com

Source

• ZyFin http://research.zyfin.com/Indices

Source of the article : Wikipedia