While the consumer confidence has picked up after months of pessimism, worries around jobs and employment still pester people.
While the consumer confidence has picked up after months of pessimism, worries around jobs and employment still pester people. “Consumer Confidence has shown recovery of 2.9 percentage points in November 2019, with marketers unleashing a bonanza for consumers, by low interest, almost 100% financing, sops and deals, lifting the mood and infusing positivity,” Thomson Reuters-Ipsos said in a recent survey. However, concerns about jobs still loom large as the indices for the job does not witness a northward swing. Indicators for economic expectations, current personal financial conditions, and investment climate moved up. However, the jobs index remained down by 1.1 percentage points, the report said.
“The festival season has lifted the mood as marketers doled out easy finance schemes for consumers to buy/upgrade durables – even automotive companies saw more cars driving out of their showrooms,” Amit Adarkar, CEO, Ipsos India & Operations Director APEC (Asia Pacific excluding China), Ipsos, said. The automobile industry is one of the worst affected sectors by the ongoing economic slowdown with car sales remaining low for close to 10 months.
While Diwali is historically a time for consumers to make big-ticket purchases as the consumers loosened their purse strings, confidence in the Indian economy has also shown recovery in the period ranging from 25 October–8 November 2019. “Jobs though continue to bother consumers. An upturn in employment confidence in future would be critical for sustaining consumer sentiment,” said Amit Adarkar.
Meanwhile, the government said that it will not release the report on Consumer spending in India. According to the report, consumer spending in the country has fallen for the first time in at least four decades, Business Standard reported few days back citing an unreleased government report. However, the report has been with the government for six months now. The household consumer expenditure survey (CES) was conducted by the National Sample Survey Organisation (NSSO) during 2017-18.