Declining for the fourth consecutive month, consumer confidence in the month of October nosedived by 3.5 percentage points tracking pessimism around jobs, economy, finances, and investment, according to a survey.
Declining for the fourth consecutive month, consumer confidence in the month of October nosedived by 3.5 percentage points tracking pessimism around jobs, economy, finances, and investment, according to a survey released on Friday evening. In such a scenario, Diwali would play a major role in reviving the muted consumer sentiment, the survey by India Primary Consumer Sentiment Index (PCSI), as measured by Thomson Reuters along with Ipsos said adding, the economy may see a further downside if sales don’t rebound now. The downward trend in confidence has been continued since May, except for a slight improvement in July 2019.
“Confidence of urban Indians has further dwindled, bang in the middle of the festival season,” Amit Adarkar, CEO, Ipsos India & Operations Director Asia Pacific, Ipsos said. “Global slowdown is impacting most economies including India. These are worrying signs and government should take steps to arrest this,” he added. The consumer confidence of Indians slipped by 0.6 per cent, which fell by 3.1 per cent in September, according to the same survey.
The survey is based on the response in four major categories — jobs, expectations, investment, and current conditions. Ironically, three of the above categories showed a downward trend in the month. Meanwhile, the economy is seeing a slowdown for sometime now owing to domestic and global factors. However, the government has recently announced a slew of measures that could add some cushion to the economy. Among the recent measures announced by the government, the cut in corporate tax added significant cheer among the traders. Finance Minister Nirmala Sitharaman has also promised to come out with more economic reforms over time with an aim to revive the sluggish economy.