Consumer confidence at its lowest in 2012: BluFin

NEW DELHI: Consumer confidence is at its lowest level in 2012, according to consumer confidence tracker BluFin. The BluFin Consumer Confidence Index (CCI) declined by 2.9 points to touch a new low of 36.7 in September. This is the highest month-on-month decline registered by the index in 2012.

The spending sentiment too has declined to a low of 24.3. This is also a new low for 2012, though higher than the 19.5 registered in December 2011. This dip at the onset of the festive season does not bode well for companies banking on a revival in sales.

Curiously, consumers in South India are optimistic while the rest of the country, especially North India and East India, is mired in pessimism. Spending sentiment in North India, a major market for automobiles, has hit a low of 22.2, a steep fall of 3.5 points over August. West India witnessed a sharp decline of 5.2 points over last month. At a score of 19.5, the East continues to be the most pessimistic region.

However, South India continues to be upbeat, its spending score rising marginally to 34.1. Bangalore (score 45.7) and Hyderabad (44.1) are the most optimistic cities while Patna (9.3) and Cuttack (9.6) are the most pessimistic.

"The scores show that consumers remain gloomy about the economy and are worried about prices of basic necessities. This month's CCI does not include consumer reactions to the diesel price hike, so overall I expect consumer sentiment to dampen even further going forward," says BluFin CEO Rashid Bilimoria.

Another worrying sign is that even the overall employment sentiment, which was one relatively bright aspect of the survey over the past one year, has become more pessimistic. BluFin's Employment Sentiment Index reached a new low of 42.9 in September, reflecting increased pessimism about employment across India. Bilimoria says this is a cause for concern.