India economy: Weak jobs, growth hit consumers' confidence

NEW DELHI: Reflecting the prevailing economic woes in the country, the consumer confidence has declined for the first time in the last nine quarters even as India conceded the top slot on the Nielsen consumer confidence index to Indonesia.

"The drop from the top position for India after nine quarters indicates a growing anxiousness amongst consumers today in relation to the job prospects and spending habits," Nielsen India region president Piyush Mathur said in Mumbai while releasing the report.

India GDP slipped to 6.5% in the fiscal year ending March 2012, lowest economic expansion since 2002-2003. On top of that India is grappling with various issues including rocketing inflation, sagging rupee and lower investments by companies. A lackluster monsoon is adding to the woes.

Even though the Indian consumers are the second most confident lot after the Indonesians, it registered a 4 point slide to 119 points on the Nielsen's global consumer confidence index compared to the first quarter of 2012. India's slide is one point higher than the global slippage average of 3 points on the Nielsen Online Global Survey that spanned 56 countries between April to June months.

"The four points fall is fairly significant. Now we are going below 120 points. The sentiment is not where it used to be. Rising inflation and fuel prices, which are a direct hit on the wallet, combined with a comparatively low GDP and fall of the rupee have taken a toll on consumer confidence," Mathur said.

Not just India, the confidence level fell for other emerging economics such as China and Russia as well.