Consumer confidence picks, barely, after nose diving in June 2019

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Published: July 23, 2019 5:15:01 PM

While rising living costs and economic growth slump took its toll over consumer sentiment, the same has now picked up marginally after going down by 2.9 percentage points in June 2019.

Consumer sentiment is indicative of people’s keenness to spend on daily spends and investment. Photographer: Dhiraj Singh/Bloomberg

While rising living costs and economic growth slump took its toll over consumer sentiment, the same has now picked up, barely, after going down by 2.9 percentage points in June 2019, said a report. “The India Primary Consumer Sentiment Index (Consumer Confidence) has shown recovery in July 2019, and has moved up, marginally, by 0.6 points,” Thomson Reuters-Ipsos report said. Consumer sentiment is indicative of people’s keenness to spend on daily expenses and investment. The June sentiment had suffered because consumers were reeling under the high cost of living and felt strapped for funds for daily spends and investments, Ipsos-Thomson Reuters survey for June had said earlier.

However, for the July month, consumer confidence has gone northwards, said Parijat Chakraborty, Country Service Line Leader, Ipsos Public Affairs, Corporate Reputation and Customer Experience. “Consumer sentiment is limping back to recovery and showing cautious optimism in July,” he said, adding that the mood is somewhat lifting for finances, investment, jobs and economy. 

The four indices that the report takes into account, which consolidate the consumer sentiment ranking, have shown slight improvement. These indices are PCSI Employment Confidence (“Jobs”) Sub-Index, which has risen by 0.6 percentage points; the PCSI Economic Expectations (“Expectations”) Sub Index, which is up by a negligible 0.1 percentage point; the PCSI Investment Climate (“Investment”) Sub-Index, which has shown a considerable surge of 0.6 percentage points; and the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index, which has recovered the most among the other three by 1.0 percentage point from June. 

However, PCSI Employment Confidence (“Jobs”) Sub-Index has fallen from the last month’s spike of 2 percentage points. The same indicator keeps fluctuating every month.  The recovering consumer sentiment, even though marginally, is good news for various industries such as FMCG, and automobile industries. The weak consumer sentiment translates into a major block for the sales of these industries.

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