After a substantial drop in January, consumer sentiment saw a recovery in this month across the four indices of jobs, economy, personal investment, and personal finances, according to a survey.
After a substantial drop in January, consumer sentiment saw a recovery in this month across the four indices of jobs, economy, personal investment, and personal finances, according to a survey. The consumer confidence of urban Indian sees which dropped 7.3 percentage points in January recovered by 2.5 percentage points in February, according to the Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI). “We see recovery across all data points, so technically, the mood of the masses has lifted. It could be due to the Budget providing some perceptual relief — tax breaks. The focus needs to be on job creation and employment generation, for further reprieve,” said Ipsos India CEO Amit Adarkar.
It comes as the economy is seeing a slowdown for some time now on account of both domestic and global factors. The outbreak of Coronavirus has further added to the slowdown. According to the first GDP advance estimates, the economy is expected to grow at just 5 per cent in the fiscal year 2019-20.
“The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has surged across all the four indices: the PCSI Employment Confidence (“Jobs”) Sub-Index has crawled up by 0.6 percentage points, the PCSI Economic Expectations (“Expectations”) Sub Index, has significantly moved up by 4.7 percentage points; the PCSI Investment Climate (“Investment”) Sub-Index has inched up by 3.6 percentage points; and the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index has risen by 2.2 percentage points, over last month”, the survey said.