Inflation may be flirting with double-digit figures, but Indians living in metros seem to be an optimistic lot with most of them expecting the employment scenario as well as the economic conditions to improve in the near term.
Knowledge services firm Boston Analytics' Consumer Sentiment Index (BACSI), a monthly barometer of consumer opinion regarding current state and future expectations of the macro economy, household financial conditions and consumption, has registered a nearly 3 per cent increase in the level of over all optimism in June.
BACSI for June stood at 96.9, up 2.9 per cent from the previous months reading of 94.2. The rise is attributable primarily to improvement of sentiment related to consumption plans, employment and expectations from the future state of economy.
However, sentiment related to inflation remained very low and acted as a significant offset, the survey stated.
The index, based on a monthly survey conducted across metros -- Delhi, Mumbai, Kolkata and Chennai, targets a diverse set of demographics representative of Indian consumers. It addresses macro-level variables reflecting the nation's economic conditions, including indicators such as employment, inflation, interest rates, and real estate.
The BACSI Employment Sentiment index recorded a marginal increase reflecting the expectation of a positive and robust hiring market.
High job security, combined with consumers' increased confidence about their ability to create alternative means of employment, led to a marginal increase in the BACSI Employment Sentiment Index compared to last month.
The index increased by 4.9 per cent, from 71.1 in May 2008 to 74.6 in June 2008.