Consumer Confidence of Urban Indians slides by 3.8 percentage points in April 2020
The monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) for April 2020, has shown a significant 3.8 percentage points drop over March 2020, as urban Indians brace themselves up for more period of uncertainty and status quo, due to the COVID-19 pandemic. All four indices have shown a major drop due to depleting confidence in the immediate future.
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has lowered over the last round, in March 2020, by 3.8 percentage points. So, the PCSI Employment Confidence (“Jobs”) Sub-Index is down by 2.5 percentage points, the PCSI Economic Expectations (“Expectations”) Sub Index, has dropped by 2.2 percentage points; the PCSI Investment Climate (“Investment”) Sub-Index has plummeted by 6.0 percentage points; and the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index has dipped by 5.8 percentage points, over the previous month.
“The long drawn COVID-19 crisis and the complete lockdown have impacted urban Indians’ sentiment, further worsened by a huge amount of uncertainty about the future. The consumer sentiment has taken a substantial beating in comfort with personal finances and allocating money for future investments. There is clearly an anxiety, which is leading to downbeat sentiments. And it is still unknown when the ordeal will end. The recently announced lock down extension will certainly worsen this sentiment. After the lock down is lifted, it will be critical for people to feel confident to loosen their purse strings- to spend or to invest,” says Amit Adarkar, CEO, Ipsos India.