Home / News / India /  Consumer confidence up in October but unemployment worries urban Indians
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NEW DELHI : Consumer confidence among urban Indians further improved in October growing 1.9 percentage points over September, according to the RefinitivIpsos India Primary Consumer Sentiment Index (PCSI) data released on 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 improvement across at least three sub-indices in October, over the previous month, Ipsos said. Confidence around jobs was down, the researcher said. Job creation will need further impetus, it added.

The PCSI employment confidence or jobs sub-index dropped 0.5 percentage points; the PCSI current personal financial conditions or current conditions sub-index reported was up 4.2 percentage points. The PCSI investment climate sub-index reported a jump of 3.8 percentage points, while the economic expectations sub index, moved up by a miniscule 0.3 percentage points, Ipsos said.

The findings come as India is in the thick of festive season. While, the threat of a third wave still looms large, consumer mobility has improved.

“Consumer confidence has improved in October and notably in the two key areas of personal finances and investments for the future. This augurs well for the festival season as consumers do not feel strapped for funds to splurge and enjoy the festival time," Amit Adarkar, CEO, Ipsos India said in a note.

Confidence around the economy has seen a minor uptick, Ipsos report.

However, consumer confidence in their employment is down.

On Monday, Mint reported that states in north India were witnessing high rates of unemployment. In Delhi, the unemployment rate is at a four-month high of 16.8%, according to data for September from the Centre for Monitoring Indian Economy (CMIE) and published in Mint.

Adarkar said confidence around jobs is downbeat. This needs special focus, both by the government and India Inc—after all, improved job outlook is critical to sustainability of demand, he said.

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