Indian consumer confidence deteriorates in May
New Delhi: Consumer confidence in India weakened further in May amid the severe Covid crisis and resulting lockdowns in states.
The monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) for India in May showed a sharp drop of 6.3 percentage points from April 2021, amid fears of Covid-19.
The monthly PCSI, which is based on the aggregation of the four weighted sub-indices, plunged into all of the sub-indices. The PCSI job confidence sub-index is down 4.7 percentage points, the PCSI current personal financial conditions sub-index is down sharply by 9.0 percentage points.
In addition, the PCSI Investment Climate sub-index fell sharply by 8.4 percentage points and the PCSI Economic Expectations sub-index fell 4.4 percentage points.
Amit Adarkar, CEO of Ipsos India, said: “The second wave was much more intense compared to the first wave and we are seeing its terrible impact not only on our healthcare infrastructure, which is under stress due to the strong increase in cases., but also on consumer sentiment, which fell in all four sub-indices. Especially for personal finance, for the day-to-day management of household spending and savings and investments for the future . “
Confidence around jobs and the economy has also taken a hit and right now the government’s goal is to contain the virus and save lives. And that is why we are seeing lockdowns and restrictions being imposed. But it also has an impact on livelihoods and income, he said.
“It’s a difficult dilemma, but saving lives will take priority over everything else and of course accelerating the vaccination campaign, with now Sputnik V also making its debut in India. the next 3-4 weeks. and gauge whether the restrictions are lifted from June. If that does not happen and the vaccination campaign does not accelerate, we expect a very slow rebound. “