Indian consumers' confidence level rose in October owing to slight uptick in spending sentiment on account of festive season, says a study by financial services provider BluFin.
The BluFin's Consumer Confidence Index (CCI) grew by 1.5 points in October from the previous month to 38.2. The index improved slightly after declining consistently in the last two months.
The index is a key 'aggregate' indicator that assesses the pulse of urban Indian consumers with regard to the economy, spending behaviour and employment. A score below 50 reflects pessimism and one above that, optimism. The study is conducted among 4,000 urban consumers in 18 Indian cities, including metros and smaller cities.
"The marginal increase in the October CCI score shows that Indian consumers are responding in a somewhat upbeat fashion to the upcoming festive season. There is a slight uptick in spending sentiment reflecting a normal seasonal trend and one that may not persist after the festive season," BluFin CEO Rashid Bilimoria said.
A sub index, which rates spending sentiment, increased by 0.8 points to 25.1 in October.
However, the index, which measures employment sentiment, continued its decline from 47.1 in July to 42.2 last month, the lowest level since October 2011.
"...(the current job sentiment)is a more troubling sign indicating that consumers are increasingly more concerned about their employment situations," he added.
Consumer sentiment on inflation, at 24.6 in last month, has inched up marginally by 0.4 points although the index level still suggests heavy pessimism among consumers. Inflation continues to be a key concern.
Another sub-index, which measures future expectations, stood at 35, indicating that consumers were still pessimistic about the economy's prospects, though they were more comfortable about their present situation with a score of 45.
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