Consumer sentiment dips for personal finances & investments as inflation impacts household budgets
The Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) for September shows consumer sentiment for personal finances and investments has dipped in September as inflation impact catches up, though overall the consumer sentiment has remained unchanged and steady for India in September. The sentiment around jobs witnessed a slight uptick, while the sentiment for the economy was equal to last month.
The monthly PCSI which is measured by four weighted sub-indices showed a mixed bag. The PCSI Employment Confidence (“Jobs”) Sub-Index was up 0.8 percentage points; the PCSI Economic Expectations (“Expectations”) Sub Index, was equal to the August level; the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index was down 0.6 percentage points and the Investment Climate (“Investment”) Sub-Index was down 0.9 percentage points, over the previous month.
Amit Adarkar, CEO, Ipsos India said, “Consumer sentiment for India has not shown any sharp variations from August 2022 – the overall sentiment is static at 63.6 points for India in September (same as Aug), while the sentiment around personal finances, for day to day running of households and confidence around investments for the purchase of big ticket items and savings, has deflated in September. Inflation and the rising cost of living are impacting household budgets. With the festival season coming up in October, marketers will need to woo consumers with attractive promotions, interest free loans/ EMI options etc. to help consumers upgrade and shop, to offset a bleak Diwali. There is likelihood of the global recession setting in unless the War in Ukraine completely stops and global steps are taken to put the economy in the overdrive and back on grid. Until then, we can only brace ourselves for tougher times. Even if steps are being taken to control inflation, the middle class and the lower strata of Indians are feeling the strain on their household budgets, for both essentials and discretionary spends.”
