Consumer confidence up: MasterCard Survey

Our Banking Bureau
26 May 2005

New Delhi / Mumbai: According to a survey by MasterCard International, Indian consumers are more optimistic about the next six months now than they were in August last year.

In India consumer sentiment scored 72 points in February this year against a score of 58 points six months ago, and up from even 63.5 in the first half of 2004 according to the survey.

The survey covered the markets of Egypt, Kuwait, Lebanon, Saudi Arabia, the United Arab Emirates, South Africa and India. Called the MasterIndex of Consumer Confidence, the survey awarded points on a scale of 1-100 across five parameters. Consumer confidence in India was seen to be better than in Lebanon and Egypt. In Kuwait, Saudi Arabia, South Africa and the UAE, the index was at 94.6, 93.2, 83.5 and 92.9 respectively.

The statement went on to say that, "The consumers in India are slightly optimistic about employment (54.6), fairly optimistic about the economy (69.7) and quality of life (74.7), and have fairly high expectations of regular income (80.5) as well as of the stock market (80.1)."

The survey covered 400 individuals in the 18-64 age group in Mumbai and Delhi, and asked for their outlook on the parameters of: regular income, economy, quality of life, stock market and employment.

The MasterIndex has a range of 0 to 100, with 50 as the mid-point. A score of 50 denotes no change in consumer confidence. A score above 50 indicates optimism about the quality of life over the next six months while a score below 50 indicates pessimism.