Inflation up, jobs down: February consumer confidence drops; here’s what survey shows

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Updated: February 19, 2019 4:44:11 PM

The fall in confidence showed subdued interest towards savings, investments, jobs and spending, the study added.

Rising inflation, low liquidity and jobs scarcity has led to a fall in consumer confidence in February, a study said. Primary Consumer Sentiment Index (PCSI) saw a downward slide, a drop by 0.9 per cent, in consumer confidence this month, according to a study by Thomson Reuters-Ipsos.

“Consumer is downbeat due to rising inflation, lesser liquidity and lack of job opportunities,” said Parijat Chakraborty, Country Service Lines Group Leader, Public Affairs, Corporate Reputation & Customer Experience, Ipsos India.

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The fall in confidence showed subdued interest towards savings, investments, jobs and spending, the study added. Besides, a rise in inflation is leading to a cash crunch, negating bouncy mood of January 2019 into pessimism this month, the study noted.

The fall in February comes after consumer confidence rebounded in January on account of easing inflation, increasing liquidity and stabilising US-China trade war. After a slight fall in December, the consumer confidence had moved up by 2.7 percentage points.

The index, prepared by Thomson Reuters in partnership with Ipsos, reflects monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments.

Meanwhile, the Consumer Confidence Survey released by Reserve Bank Of India for December has shown a drop in consumer’s pessimism expecting a rise in income,  improvement in price situation and more jobs in future.

 

 

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