Consumer Confidence Index (CCI) - India

The ET-TNS Consumer Confidence Index (CCI) has increased by 5% to 128 points in the June ’07 ended quarter, compared to the March quarter.

The CCI is divided into two components — the present situation index (PSI) and future expectation index (FEI).

In the current round of the survey, the PSI has increased by 7%, while FEI has risen by 3% over the previous round. Both PSI and FEI measure consumer confidence according to three parameters, namely business conditions, jobs and income.

19 Jul, 2007
http://economictimes.indiatimes.com/Opinion/Todays_Features/ET-TNS_Consumer_Confidence_Index_Survey/Nothings_gonna_stop_us_now/articleshow/2216626.cms
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The ET-TNS Consumer Confidence Index (CCI) - Method of Calculation

The ET-TNS Consumer Confidence Index (CCI), India’s first comprehensive measure of consumer confidence, was launched in December ’02.

The ET-TNS CCI is made up of two components: The Present Situation Index (how things stand currently compared to six months ago) and the Future Expectations Index (how things will be six months hence).

Each component is, in turn, based on three dimensions — general business conditions in the respondent’s line of work, availability of jobs and household income. For each dimension, we calculated the ‘relative value’, which is simply the difference between the percentages of positive and negative responses, plus the normalisation factor of hundred.

The CCI and its two components are the arithmetic averages of the relative values of the dimensions. A CCI at 100 implies a ‘neutral’ consumer. A value below 100, in theory, implies prevalence of pessimism and a value above 100 means there are more optimists than pessimists.

The CCI’s movement acts as a leading indicator of consumer behaviour and hence, of the overall business cycle. International experience shows that the CCI essentially indicates the direction of movement, rather than the actual quantum of consumer spending.

http://economictimes.indiatimes.com/Opinion/Todays_Features/ET-TNS_Consumer_Confidence_Index_Survey/How_we_did_it/articleshow/386977.cms