Consumer sentiment dips in July: Refinitiv-Ipsos monthly India PCSI

After June’s upturn, consumer sentiment for India has dropped again in July 2002 by 0.6 percentage points according to the monthly India Refinitiv-Ipsos Primary Consumer Sentiment Index. In fact, we are seeing a dip across all the 4 sub-indices.  

The survey shows, confidence around the economy has been hit the hardest which is driving down the overall confidence.  The PCSI Economic Expectations (“Expectations”) Sub Index, is down 1.4 points; the Investment Climate (“Investment”) Sub-Index is down 0.7 percentage points;  the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index has dipped 0.4 percentage points;; and the PCSI Employment Confidence (“Jobs”) Sub-Index is down 0.2  percentage points, over the previous month.

Amit Adarkar, CEO, Ipsos India, said, “Global slowdown is impacting most economies and India too is not insulated being the world’s 6th largest economy, as there are the looming inflationary conditions due to the prolonged Ukraine war which have impacted fuel prices and cost of living, despite measures by govt to ease it for consumers. Though inflation seems to have tapered off in June, it is yet to show a decline. Consumer confidence has yoyo-ed in AMJ quarter in absence of clear direction. The actual impact on consumer demand in AMJ quarter may have been muted as most consumer goods marketers absorbed the input price increase impact through cost engineering and downgrading pack sizes while maintaining price lines. The JAS quarter will be extremely crucial as consumer sentiment could swing either way and that could set the trend for the festival season and rest of the fiscal year. One thing is certain - India is still more resilient than its global counterparts who have been hit harder.”       

           
India PCSI 2016-2022 Trend

Methodology

These are findings of an Ipsos online poll conducted June 24,2022 – July 8,2022.  For this survey, a sample of 500 adults from Ipsos' India online panel  aged 16-64 years was interviewed online. As this is an online poll in India, representative of the online community in the country, it is not reflective of the general population; however, the online sample in is particularly valuable in their own right as they are more urban, educated and have more income than their fellow citizens and often referred to as “Upper Deck Consumer Citizens” or Primary Consumers. The precision of the Refinitiv/Ipsos online polls is measured using a Bayesian Credibility Interval. In his case, the poll has a credibility interval of plus or minus 5.0 percentage points for all adults. For more information on the Bayesian Credibility Interval please see  http://www.ipsos-na.com/news-polls/pressrelease.aspx?id=5836.

The Refinitiv/Ipsos India Primary Consumer Sentiment Index (PCSI), ongoing since 2010, is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: Current Conditions Index; Expectations Index; Investment Index; and, Jobs Index.