After a record fall in April and May amid the coronavirus-induced nationwide lockdown and halt in business activities, consumer confidence has shown a minor recovery of 0.4 percentage points this month.
It seems the gradual easing of countrywide restrictions alongside the staggered reopening of various sectors of the economy after over two months of the coronavirus pandemic-led lockdown is giving an upward push to consumer sentiment.
As per the latest Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI), there has been a marginal recovery in consumer sentiment in India in the month of June. After a record fall in April and May amid the coronavirus-induced nationwide lockdown and halt in business activities, consumer confidence has shown a minor recovery of 0.4 percentage points this month.
"Easing of restrictions and some bit of normalcy returning with commercial activities have halted the free fall of the consumer sentiment to some extent," said Amit Adarkar, CEO, Ipsos India.
The Refinitiv-Ipsos India Primary Consumer Sentiment Index (PCSI), which has been in place since 2010, is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. It is composed of four sub-indices — Current Personal Financial Conditions Index, Economic Expectations Index, Investment Climate Index, and Jobs or Employment Confidence Index.
In June 2020, while the first three sub-indices saw a slight upward surge, the Jobs sub-index continued to remain in the doldrums and dropped by 3.4 percentage points. This means the consumer sentiment for jobs continued to be downbeat, while a minor recovery was witnessed with respect to economy, personal finance and investment.
"It is early to read any sustainable positivity; though, cash crunch has eased to some extent, with commercial establishments opening up and some bit of normalcy returning to everyday life. Though, early days. Notably, the job market continues to be dismal. For sustaining positive sentiment, it is critical for people to have confidence in their job security," Adarkar added.Join the Moneycontrol Rule the New Normal powered by Lenovo webinar on the 18th of June. REGISTER NOW!
