New Delhi: Consumer confidence for the month of June fell by 2.9% as the high cost of living and a general gloom around the state of the economy weighed heavy on Indian households, according to the findings of the India Primary Consumer Sentiment Index (PCSI), as measured by Thomson Reuters along with Ipsos.
Consumers are reeling from the high cost of living and feeling strapped for funds for daily spends and investments, also due to the dismal performance of the economy, Ipsos said in its monthly consumer confidence survey on July 12. The survey was conducted among 500 adults aged 16-64 between May 24, 2019–June 7, 2019.
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. For the month of June, three of the four sub-indices reported a dip.
The sharpest drop was seen in the personal financial conditions or the “current conditions" sub-index that dropped by 6.3 percentage points over the previous month. Interestingly, confidence in the jobs market saw a slight revival compared to a month ago. The survey noted that the PCSI employment confidence sub-index bounced back after last month’s slump; up by 2.0 percentage points. Those surveyed still remain pessimistic about economic expectations—the sub-index registered a drop of 0.8%. The PCSI investment climate sub-index, meanwhile, dropped by a significant 5.8 percentage points.
“Mood is visibly downbeat among consumers," Parijat Chakraborty, country service line leader, Ipsos Public Affairs, corporate reputation and customer experience, said. Confidence about spending, savings and investments has slumped majorly, he added. Also, to some extent there is less confidence about the performance of the economy, Chakraborty noted.
The survey comes a week after the government presented its Budget amid concerns around low levels of employment, slowing consumer demand, and sluggish industrial growth.