Amid raising concerns for the Indian economy, consumers have trimmed personal spendings and investments and the consumer confidence has dropped in the month of January.
Amid raising concerns for the Indian economy, consumers have trimmed personal spendings and investments and the consumer confidence has dropped in the month of January. “Consumer sentiment has nosedived by 7.3 percentage points in January 2020,” according to a joint study by Thomson Reuters-Ipsos. The report added that the pessimism is caused by the depleting confidence around personal spending and investments, added with concerns for the economy. However, confidence for jobs has slightly moved up as compared to last month.
“Inflation and prices of essential commodities have been going up due to the US-Iran standoff and uncertainty around the US-China trade war. It has jacked up oil prices and the cost of living,” Amit Adarkar, India CEO & APAC Operations Director, Ipsos said in a statement. Further aggravating the situation is IT planning which is also a strain on incomes and the ongoing global slowdown that has also hit India’s economic growth.
Out of the four indices used to check consumer confidence, three of them have slipped in January 2020. This includes Economic Expectations, Investment Climate, and Current Personal Financial Conditions. Only Employment Confidence has slightly moved upwards by 0.5 percentage points over last month.
The survey, which was conducted online, is representative of the online community in the country. While it may not be a reflection of the views of the general population, “the online sample is particularly valuable in their 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,” Ipsos-Thomson Reuters said.
In RBI’s latest Consumer Confidence survey, the apex bank said the sentiment is not likely to improve in the coming months due to the sputtering economy. “Consumers expect their overall spending to remain unchanged going forward largely due to an increase in prices,” the Reserve Bank of India said in its fifth bi-monthly policy in December last year.