Consumer sentiment dips in April
Premium- Though the drop in consumer sentiment in April is marginal, there could be a significant downturn by end of this quarter unless there is a respite from inflation
New Delhi: Consumer sentiment among urban Indian households dipped 0.4 percentage points in April, according to the Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) monthly report for India.
PCSI 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.
The sentiment in April dipped across all four sub-indices--current financial conditions index, economic expectations index, investment index, and the jobs index.
The investment climate sub-index is down 0.8 percentage points, the PCSI current personal financial conditions sub-index decreased 0.9 percentage points; the PCSI economic expectations sub index was down 0.8 percentage points; while the the PCSI employment confidence sub-index was down 0.1 percentage points, over the previous month.
Urban households are dealing with higher costs of living as inflation drives up the prices of essential goods. This is impacting consumer confidence.
“Macro factors, like the Russia-Ukraine conflict have increased the procurement price of crude oil per barrel by double digits in March and April over February, leading to increase in fuel prices in India. This in turn is driving up inflation and cost of living," said Amit Adarkar, CEO, Ipsos India.
Adarkar said that unless the conflict ends, the economic impact will only worsen, fueling more inflation. “There is also talk of the new Omicron strain. Though the drop in consumer sentiment in April is marginal, we could see a significant downturn by end of this quarter unless there is a respite from inflation. We need to tread with caution," he added.
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Ipsos conducted an online poll between 25 March and 8 April. A total of 500 adults from Ipsos’ India online panel aged 16-64 years were interviewed online.