India records highest national index score in May 2024: Ipsos consumer sentiment index

Delhi: The LSEG-Ipsos Primary Consumer Sentiment Index (PCSI) for India in May 2024 showed improvement in the overall sentiment, with an upside of +0.8% points. Also, the survey showed that India continues to hold onto the highest national index score (67.8% points) across all the 29 countries covered in the monthly survey. 

Consumer sentiment is measured across 4 sub-indices and the sentiment showed a mix bag of performance in May 2024 - the PCSI Employment Confidence (“Jobs”) Sub- Index, was seen to move up 1.9% points; the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index however was down 0.6% points; the PCSI Investment Climate (“Investment”) Sub-Index too was down 0.1% points; and the PCSI Economic Expectations (“Expectations”) Sub-Index was up 1.7% points. 

Amit Adarkar, CEO, Ipsos India, said, "India is the most buoyant market across all markets covered in the survey with a National Index score of 67.8 percentage points and we also see an upturn in consumer sentiment in May which augurs well for growth and attracting more FDI – as we see the sentiment for the economy and jobs is seeing a major boost. The Indian economy and been showing a lot of resilience and is largely defined by domestic consumption and though it has been on the radar of global companies for pumping in most investments, as India is a highly growth oriented market. Though with the General Elections in India some of the decisions maybe delayed, like in the case of Tesla, Elon Musk recently postponed his visit to India to the time once the Lok Sabha elections are done and dusted. Also with the new financial kicking in, hiring is back on grid and the job market is looking up. Though the sentiment around personal finances and for investments and savings continues to be somewhat depressed, which could impact consumption around discretionary spends and put a strain on daily spends of households.”  

Among the 29 countries, India (67.8) continues to hold the highest National Index score. India, Indonesia (63.2), and Mexico (61.0) are the only countries with a National Index score of 60 or higher.Nine other countries now show a National Index above the 50-point mark: Singapore (58.0), Thailand (55.8), the U.S. (54.3), Sweden (54.1), Great Britain (52.8), the Netherlands (51.9), Brazil (51.7), Poland (50.3), and Australia (50.3). 

In contrast, just four countries show a National Index below the 40-point mark: South Korea (39.7), Chile (39.6), Japan (37.9), and Türkiye (33.8).

Compared to 12 months ago, seven countries show a significant drop in consumer sentiment. Twelve countries show significant increases, most of all in Argentina (+11.0), Poland (+9.4), and India (+9.1).