Consumer confidence drops again in May: Ipsos
The monthly PCSI records consumer attitudes about the current and future state of local economies, personal finance situations, savings, and the confidence needed to make big investments. The index is made up of four sub-indices: the current conditions index; index of expectations; investment index; and job index. For the month of October, all four sub-indices reported a drop. The monthly PCSI, which is based on the aggregation of the four weighted sub-indices, fell on all four indices in May.
The Confidence in Employment or HPIC Jobs sub-index is down 4.7 percentage points; the PCSI sub-index of current personal financial conditions or current conditions showed a sharp drop of 9 percentage points. The PCSI investment climate sub-index fell 8.4 percentage points, while the economic expectations sub-index fell 4.4 percentage points, Ipsos said.
In the aftermath of last year’s lockdown, consumer sentiment showed steady improvement through January 2021, Ipsos said in its April survey. It declined slightly in April, before dropping significantly in May.
The second, more widespread wave again led to localized lockdowns. The cases, on the other hand, have reached record highs.
This once again shook the confidence of consumers, who are now concerned with managing daily household spending.
“The second wave was much more intense compared to the first wave and we are seeing its terrible impact not only on our health infrastructure, which is stressed due to the sharp increase in cases, but also on consumer sentiment, which dropped. through the four sub-indices. Mainly for personal finance, for the day-to-day management of household expenses and savings and investments for the future, ”said Amit Adarkar, CEO of Ipsos India.
Confidence around jobs and the economy has also taken a hit, he added. Several states are currently under some form of curfew depending on the surge in cases, this has an impact on livelihoods and incomes, Ipsos said.
Adarkar said a rebound could be slow. “We will need to closely monitor the trajectory of Covid over the next 3-4 weeks and assess whether restrictions will be lifted from June. If that does not happen and the vaccination campaign does not accelerate, we are considering a very slow rebound. “
Never miss a story! Stay connected and informed with Mint. Download our app now !!