Releasing its biannual report for the first half of 2016, the MasterCard Index of Consumer Confidence shows India moving up to second position in the index, being labeled ‘extremely optimistic’ about the future.
To calculate the index, respondents of participating countries were asked five questions regarding their six-month outlook on economy, their employment prospects, the local stock market, their regular income prospects and their quality of life. The results of their responses were converted in five component indexes. The average of these indexes formed the Mastercard Index of Consumer Confidence (MICC) score.
The MICC Index score and the five component index scores range from 0 – 100 where 0 represents maximum pessimism, 100 represents maximum optimism and 50 represents neutrality.
India has a score of 97.6, second only to Myanmar with a score of 99.8.
The overall consumer confidence in Asia Pacific holds steady, showing stability in nine of the 17 markets, changing from the low it attained in the last quarter or the second quarter of 2015 when the Asia Pacific index had fallen below the 60 point optimistic mark to neutral, with 12 of the 17 markets seeing a deterioration in confidence levels.
While the increase of 0.05 points in the overall score is negligible, Asia Pacific sits just below the 60 point optimistic mark at neutral. The number of markets below the 50 neutral line remain the same (eight of the 17 markets) as the last survey.
Taiwan recorded the largest gain of 16.3 points to 45.3 points – a leap from ranking the lowest among the 17 markets in the previous survey where it saw an extreme deterioration of greater than 20 points. After its recent elections in May, Philippines also saw a large improvement of 12.9 points to put it in extremely optimistic territory at 95.2 points which is its highest level since the survey series on the Philippines began in 1995.