PremiumConsumer confidence among Indian households improved slightly inching up by 1.1 percentage points in July 2021 compared to earlier months as lifting of restrictions post the second wave of covid-19 infections eased mobility and helped in resumption of businesses, findings of the monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) for India revealed on Thursday.
To be sure, consumer confidence dipped in May, sliding 6.3 percentage points over April 2021 amid an intensified covid-19 wave.
“We are seeing slow recovery from the major drop in consumer sentiment, in May 2021," Ipsos said in its report Monday.
The monthly PCSI records consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The index is composed of four sub-indices: current conditions index; expectations index; investment index; and jobs index. The monthly PCSI which is driven by the aggregation of the four weighted sub-indices, reported a recovery across some indices.
The PCSI employment confidence or jobs sub-index was down by 0.1 percentage points; the PCSI current personal financial conditions or current conditions sub-index recovered by 3.5 percentage points. The PCSI investment climate sub-index was up 3.7 percentage points, while the economic expectations sub index, reduced by 1.8 percentage points, Ipsos said.
Easing of restrictions and reopening since June has positively impacted livelihoods, said Amit Adarkar, CEO, Ipsos India.
This has translated to a robust uptick in sentiment for personal finances i.e. for day to day running of households and for investments—savings and investing for the future. However, the recovery around jobs and particularly the economy is slow and unless the mass immunization becomes a reality, we are likely to see the government working with utmost caution, to mitigate another wave of infections, he added.
This means the economy may take longer to get back on grid. With many other countries facing the onset of a new wave—the pandemic is far from over, he warned.
India's consumer sentiment reported steady improvement till January 2021, Ipsos said in its April survey. It dipped slightly in April, before falling significantly in May. It is now reporting improvement.
Ipsos conducted an online poll between June 25, 2021 – July 9, 2021 among a sample of 500 adults from Ipsos' India online panel aged 16-64.
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