The India Primary Consumer Sentiment (consumer confidence) Index (PCSI) for August 2022 is down 0.1% points over last month, as measured by the Refinitiv-Ipsos PCSI.
The monthly PCSI is measured by four weighted sub-indices. And in August, Refinitiv-Ipsos saw a mixed bag. While the confidence is up for personal finances and investments and savings, the sentiment has dipped for confidence around the economy and jobs.
The PCSI Employment Confidence (“Jobs”) Sub-Index is down 0.9% points; the PCSI Economic Expectations (“Expectations”) Sub-Index, is down 0.3 points. While PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index is up 0.1% points and the Investment Climate (“Investment”) Sub-Index is up 0.6% points; over the previous month.
Elucidating on the findings of the monthly survey, Amit Adarkar, CEO, Ipsos India, said, “Prima facie, the survey shows a minor weakening of the consumer sentiment. But when we look deeper at the four sub-indices employed to measure consumer sentiment, it shows consumers are satisfied with their finances for running of day-to-day households. And they also are confident about their savings for the future and for the purchase of big-ticket items. This bodes well for the domestic economy and consumption. On the flip side there is worry looming around the global impact on the Indian economy and the slowdown and its long-term impact on cost of living. There is also fear around jobs, whether around job retention or new job creation. With the Ukraine war far from over and the pandemic impact yet to wear off, the sentiment is likely to yo-yo or remain unpredictable, until the macro factors improve.”
“JAS quarter will determine how the consumer sentiment will pan out around the festival season and the entire H2. Government measures have stemmed inflation to some extent but definitely cost of living is up from last year and consumers have been making adjustments in their household expenditures and discretionary spends to offset the impact on their expenses and enhancing their savings,” added Adarkar.