New Delhi: The decrease in the threat of the Omicron and the lifting of most of the restrictions have led to a positive impact on Consumer Sentiment in February 2022. The Refinitiv-Ipsos Monthly Primary Consumer Sentiment Index (PCSI), among Urban Indians has bounced back showing recovery and a 4.5 percentage points surge in consumer confidence. Interestingly, the sentiment is up across all the four sub-indices – for jobs, economy, personal finances, and investments for the future and purchase of big-ticket items.
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has moved up for all of them. The Investment Climate (“Investment”) Sub-Index has increased by6.4 percentage points; the PCSI Current Personal Financial Conditions(“Current Conditions”) Sub-Index is up by 7.5percentage points; the PCSI Economic Expectations (“Expectations”) Sub Index, is slightly up by 1.8 percent points; and the PCSI Employment Confidence (“Jobs”) Sub-Index has shown an uptick of 1.2 percentage points, over the previous month.
Amit Adarkar, CEO, Ipsos India links the bounce back in consumer sentiment, to the macro forces, “Restrictions and precautions had caused people a bit of anguish in January 2022, but they were necessary. Now with the infections largely receding and being brought under control, we are seeing most cities relaxing the strict COVID19 norms and the reopening of offices and commercial properties. We could be nearing the endemic stage, where the infections are in some areas but with lower threat perceptions. Notably, we see a major surge in sentiment for personal finances for the day-to-day running of households and for investments (for the future and for purchase of durables, etc.). The overall positivity around the state of the Indian economy has also contributed to the surge in consumer sentiment. This surge has restored consumer sentiment to a level last seen only in December 2019. Marketers should latch onto the opportunity, of the prevailing optimism and the disposable incomes and woo consumers with attractive schemes because consumers will now be willing to loosen their purse strings. Though COVID 19 protocols of masking up, social distancing and sanitizing of hands, still need to be followed.”
“The Union Budget has emphasized on development in infra and job creation. With large budgets riding on progressive schemes and the intent, this too is increasing the feel-good factor,” added Adarkar.
