Launching of CNBC-TV18’s Boston Analytics Consumer Confidence Index
According to ACNielsen’s recent report India’s consumer confidence highest in world.
Now, India’s No.1 business news channel CNBC-TV18 along with research firm Boston Analytics, will introduce the CNBC-TV18 Boston Analytics Consumer Confidence Index(CCI), with an objective of providing, policy makers, market participants , researchers , corporate, industry leaders and trend watchers , an in depth insight into the minds of Indian consumers.
CCI is a crucial tool that enables the user to understand the consumer’s mindset and make an informed assessment about the future course of economy. The index will be constructed on a sample size of 10000 respondents spanning 15 cities in India, thus making it largest Consumer Confidence Index in the world , will be based on the consumer confidence level according to various parameters like current and future Expectations , Inflation , Spending , Savings , Employment , Real Estate.
Manufactures, banks, retailers and the government monitor changes in the CCI to factor in the data in their decision-making processes.
CCI less than 5% are often dismissed as inconsequential, but index changes to 5% or more indicate a change in the direction of the economy.
A month on month decreasing data indicates that consumers have negative view on their ability to secure and to retain good jobs. So, banks can assume decrease in lending activity, mortgage applications and credit card use. Manufactures can expect consumers to avoid retail purchases, especially large ticket items that require financing.
Sentiment indicators can carry a lot of weight as the happiness and spending ability of consumer is the most important factor in expanding economy.