ZyFin's Consumer Outlook Index rose to highest in 2015 in October

MUMBAI: ZyFin's Consumer Outlook Index rose to 47.4 in October, its highest since the beginning of this calendar year. The index was at 46.9 in September. Improving sentiment in relation to employment prospects and lower inflation expectations triggered the uptrend observed since January. A softer interest rate regime prompted cheaper borrowing.

The Consumer Outlook Index is a measure of consumer sentiment in urban India based on outlook toward employment, inflation and spending plans. It is based on a monthly survey of 3,000 consumers in 11 cities across India. A score above 50 reflects optimism, while below 50 is an indication of pessimism.

The Employment Sentiment Index rose 2.8% to 57.4 in October from the preceding month on enhanced employment prospects and job security. Geographical diffusion of the index indicated convalescent employment opportunities in Lucknow, Mangalore, Delhi, Ahmedabad, Mumbai, Chennai, Hyderabad, Bengaluru, Indore and Guwahati in descending order. However, expectations of growth in employable opportunities in Kolkata remain muted.

The Spending Sentiment Index, a proxy for demand creation in the economy, remained steady at 40.6 in October, compared with 40.7 during the previous month. A favourable economic scenario coupled with conducive employment projections exhibited comfort towards making steep purchases. North and south India have been congenial towards lavish purchases while the west and east remain skeptical.

Consumer sentiment with regard to economic conditions stood at 68.5 in October, registering an improvement of 2.2% on stable prospects from the preceding month