In what could come as a major worry, the overall consumer confidence has slipped in the month of December, with liquidity crunch, high inflation and rising interest rates leading to pessimism, according to a report.
In what could come as a major worry, the overall consumer confidence has slipped in the month of December, with liquidity crunch, high inflation and rising interest rates leading to pessimism, according to a report. A combined report by Reuters and Ipsos has found that the India Primary Consumer Sentiment Index (Consumer Confidence), has dropped by 0.6% over the previous month of November, signalling growing pessimism about the future prospects of the economy.
Notably, the index represents the combined aggregation of the four, weighted, sub-indices: the PCSI Employment Confidence (“Jobs”) Sub-Index, which is up 0.3 points; the PCSI Economic Expectations (“Expectations”) Sub Index, which is up 0.1 points; the PCSI Investment Climate (“Investment”) Sub-Index which is down 1.4 points; and the PCSI Current Personal Financial Conditions (“Current Conditions”), which is down 1.5 percentage points over last month.
“While fuel prices have stabilized and brought some reprieve to consumers, Indians are experiencing cash crunch and lack of liquidity for big ticket purchases and savings, due to inflation and high interest rates, leading to pessimism,” Parijat Chakraborty, Country Service Lines Group Leader, Public Affairs, Corporate Reputation & Customer Experience, Ipsos India said.
The above findings were arrived at from an online poll conducted November 23, 2018 – December 7, 2018. For this survey, a sample of 500 adults from Ipsos’ India online panel aged 16-64 was interviewed online, the firm said in the report. “As this is an online poll in India, representative of the online community in the country, it is not reflective of the general population; however, the online sample in is particularly valuable in its own right as they are more urban, educated and have more income than their fellow citizens and often referred to as “Upper Deck Consumer Citizens” or Primary Consumers,” the report noted.