Indian consumers cut back spending amid rising inflation
18 Jul 2011
Rising inflationary pressures have forced Indian consumers to cut back on spending in the second quarter of 2011, despite optimism about job prospects and the state of personal finances, a survey by the Nielsen Company found.
Though Indian consumers continued to remain the most optimistic globally, their confidence level was down 5 points to 126 index points in the second quarter of 2011 as against 131 points in the previous quarter.
A sub-100 score signals pessimism about the outlook.
According to the Nielsen Global Online Survey, 56 per cent of the Indians surveyed said it was a good time to buy things they wanted, as against 61 per cent in the previous quarter.
Nielsen India managing director Justin Sargent said inflationary pressures were weighing on Indians, they may be optimistic about their jobs and the state of their personal finances, but inflation was definitely making them think about their spending habits.
He added the Indian consumer was beginning to tighten his purse strings compared to last quarter, he added.