A monthly study conducted by Thomson Reuters-Ipsos showed that consumer confidence was up 3.1 points in November as some of the macro indicators that were "wreaking havoc" settled temporarily.
After plummeting a whopping seven points in October, consumer confidence sees a huge jump on the Indian economy this month due to multiple positive changes, a study has shown. Moreover, after months, all sub-indices of the economy — employment confidence, economic expectations, investment climate, and current personal finance condition — also witnessed positive consumer confidence.
A monthly study conducted by Thomson Reuters-Ipsos showed that consumer confidence was up 3.1 points in November as some of the macro indicators that were “wreaking havoc” settled temporarily.
“Oil imports, uncertainty, trade wars, have bottomed out, for now. Also, banks have infused liquidity by increasing lending and bringing down interest rates during the festival season. Inflation has come down. All these factors are collectively boosting the consumer confidence,” said Parijat Chakraborty of Ipsos India.
The consumer confidence was highest for investment climate, which was up 3.7 points, followed by personal finance condition with a surge of 3.6 points, economic expectations 2.4 points and employment scenario 2.3 points.
India economy was in fix between August and October was oil prices were surging, job creation was dwindling, the rupee was falling and there were fears of the trade war. However, with the oil prices retreating on higher supplies, IT sector posting more job prospects, the rupee stabilising and the trade war temporarily ceasing, the consumer confidence was boosted.
Moreover, low inflation prints in the last two months also suggest that the Reserve Bank of India (RBI) is likely to maintain the status quo, which will be a positive for consumers are planning to take home or car loans.