India's consumers have become more nervous about rising fuel prices and crumbling stock markets amid the festivities, a study by IPSOS has shown.
Consumer confidence in the Indian economy plummeted by about 7 points in the month of October due to a clutch of macroeconomic problems causing personal finance issues, a study has shown. India’s consumers have become more nervous about rising fuel prices and crumbling stock markets amid the festivities, a study by IPSOS has shown.
“After an upswing in September, consumer confidence has plummeted by a significant 6.6% points in October due to the dissonance caused by macro factors. Consumers are feeling the pinch, which does not bode well due to the onset of the festival season,” the study said.
Consumers are worried about the lack of job opportunities and trade war as well. “Rise in fuel prices, crumbling stock market, trade wars between the US and China (sadly, India has not been insulated), financial scams in repayment for large banks, have all had a domino effect and led to drop in overall consumer sentiment, particularly for current personal financial conditions,” Parijat Chakraborty, Executive Director, Ipsos Public Affairs said.
On all major fronts, the consumer sentiment is in the red zone. Consumer sentiment was down a whopping 8.9 points for personal finance conditions, 8.8 points for investment climate, 4.4 points for employment and 3.9 points on economic expectations.
Petrol and diesel prices have been spiralling out of control despite tax relief due to high crude oil prices. Even as inflation has remained in control, the depreciation in the rupee, crisis in NBFCs and fall in Sensex and Nifty have made consumers nervous lately.