Consumer confidence remains downbeat as people fear job loss

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Updated: Jun 17, 2020 1:10 PM

The consumer confidence or people’s willingness to spend on various services and goods remains downbeat as the economy grapples with the coronavirus crisis.

Various government measures such as easing of lockdown helped check further erosion, yet the consumer confidence has gone up by merely 0.4 percentage points.

The consumer confidence or people’s willingness to spend on various services and goods remains downbeat as the economy grapples with the coronavirus crisis. Various government measures such as easing of lockdown helped check further erosion, yet the consumer confidence has gone up by merely 0.4 percentage points, according to a report. “Easing of restrictions and some bit of normalcy returning with commercial activities, have halted the free fall of the consumer sentiment to some extent,” Amit Adarkar, CEO, Ipsos India, said in a statement on Tuesday. Consumer Confidence witnessed record fall in April and May as Indians remained locked in their houses amid pandemic. 

Breaking gloom 

After much pessimism in May and April, three of the four indices taken into account for consumer confidence have gone up. This includes economic expectations, investment climate and current personal financial conditions. However, confidence regarding employment and job market remains downbeat, according to the Refinitiv-Ipsos Primary Consumer Sentiment Index. “It is early to read any sustainable positivity; though, cash crunch has eased to some extent, with commercial establishments opening up and some bit of normalcy returning to everyday life,” Amit Adarkar said. Now, confidence regarding the job situation is the key to aid recovery in consumer confidence. The survey was conducted on an online community and reflects the mood of urban, educated and more affluent citizens.

Meanwhile, consumer confidence had fallen to six-year low in May 2020 as coronavirus aggravated the consumer woes. “Consumer perception on the general economic situation, employment scenario and household income plunged deeper into contraction zone; while expectation on general economic situation and employment scenario for the year ahead were also pessimistic,” according to RBI’s latest survey. The central bank had taken into account the mood of people from 13 major cities such as Bengaluru, Bhopal, Chennai, Delhi etc. As pessimism looms large regarding jobs on majority of the populace, people are likely to withhold impulse buys.

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