Consumer sentiment has nosedived by 7.3 percentage points in January 2020, according to the latest India Primary Consumer Sentiment Index (PCSI), as measured by Thomson Reuters, in partnership with Ipsos.
The major cause for this pessimism is the depleting confidence around personal spends and investments. Even confidence about the economy is low, though confidence around jobs has slightly moved up.
"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. Also around this time, IT planning is a strain on incomes. Additionally, global slowdown has impacted India's economic growth as well, as economies are becoming increasingly interdependent," says Amit Adarkar, India CEO & APAC Operations Director, Ipsos.
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has plummeted for at least 3 of the 4 sub indices. The four sub-indices are: Current Conditions Index; Expectations Index; Investment Index; and Jobs Index.
While the PCSI Employment Confidence ("Jobs") Sub-Index has slightly moved upwards by 0.5 percentage points, the PCSI Economic Expectations ("Expectations") Sub Index, has significantly declined by 5.1 percentage points. The PCSI Investment Climate ("Investment") Sub-Index has plunged by 12.9 percentage points; and the PCSI Current Personal Financial Conditions ("Current Conditions") Sub-Index has also majorly dropped by 12.5 percentage points, over the last month.
The findings have come out from an Ipsos online poll conducted between December 20, 2019-January 3, 2020. For this survey, a sample of 500 adults from Ipsos' India online panel aged 16-64 was interviewed online.
The Thomson Reuters/Ipsos India Primary Consumer Sentiment Index (PCSI), ongoing since 2010, is a 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.
Ipsos Public Affairs is a non-partisan, objective, survey-based research practice made up of seasoned professionals. It conducts strategic research initiatives for a diverse number of American and international organisations, based not only on public opinion research, but elite stakeholder, corporate and media opinion research.