With economic activities resuming, consumer confidence in the country has improved in July, according to the monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI).
A statement from Ipsos said that the consumer sentiment index for India has moved up 2.6 percentage points in July 2020. In June, there was a minor uptick of 0.4 percentage points after steep falls in April and May.
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has shown recovery across all the four indices in July 2020.
While the PCSI Employment Confidence Sub-Index has minorly recovered by 0.7 percentage points, the Economic Expectations Sub Index has surged significantly by 4.9 percentage points.
Further, the PCSI Investment Climate Sub-Index has increased by 2.1 percentage points and the Current Personal Financial Conditions Sub-Index has risen by 2.2 percentage points, over June.
"Unlock-2 has brought some hope amid all the gloom of Covid-19. Easing of restrictions, some bit of normalcy returning with respect to the economy and livelihood, has resulted in the minor boost of optimism," said Amit Adarkar, CEO, Ipsos India.
He added that the government and all state governments adopting a cautionary approach to the reopening and at the same time, trying to restore normalcy is reflecting in the mood of urban consumers, providing them with a booster dose and some ray of hope.
"Though Covid-19 cases continue to mount for India and consumers are learning to live with the virus, slowly and steadily, we are yet to see a major increase in the PCSI Employment Confidence though. For sustained demand, this plays a critical role," said Adarkar.