April Consumer Confidence Index inches up 0.8% to 74.1

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April Consumer Confidence Index inches up 0.8% to 74.1

The CNBC-TV18 Boston Analytics Consumer Confidence Index has inched up 0.8% to 74.1 in April. The current situation index is up 0.1% to 71.4 while the future expectations index is up 0.6% to 77.6 for the period under review. This is the first up tick after a continuous decline for nine months.

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The CNBC-TV18 Boston Analytics Consumer Confidence Index has inched up 0.8% to 74.1 in April. The current situation index is up 0.1% to 71.4 while the future expectations index is up 0.6% to 77.6 for the period under review. April employment confidence is up 3.1% post the continuous fall for 10 months. This is the first up tick after a continuous decline for nine months.

CNBC-TV18, in association with Boston Analytics, recently launched India's largest Consumer Confidence Index. About 10,000 respondents were interviewed face-to-face across 16 cities. The up ticks are signs of flattening, and are not to be read as trend reversal.

Significant components of the Index still remain mired in pessimism. Despite the confidence in future conditions improving, consumers are not real spending. Consumer spending confidence continues to weaken. It is down 7.2% in April.

Commenting on the same, Sam Thomas, Director-R&D, Boston Analytics, and Professor, Case Western Reserve University, said, "The CNBC-TV18 Boston Analytics Consumer Confidence Index in April has bounced marginally. The bounce is mostly due to a shift in expectations surrounding the consumer's assessment of economic conditions in general. We suspect it is primarily because of new government related stimulus and also the promise of campaigns during the current elections in India. The expectations part is the primary driver of this. We have had nine months of decline and this is the first marginal bounce, but nevertheless it's an encouraging bounce."

However, consumers in small towns are more confident. "In smaller towns, there is the expectation part which is somewhat stronger but nothing that's noteworthy like we did note last month. Last months numbers were cohorts of cities that looked different. This time it was spread out across the country. Our suspicion is that there was a lot of news that consumers are digesting regarding elections and promises of all the campaigns which causing their perception which is distant to them, i.e. economic conditions and so on. They are essentially hopeful but the personal conditions haven't improved," Thomas added.