Consumer sentiment has improved and moved up by 1.1 percentage points for urban Indians in December 2022, according to the latest monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) report.
The monthly PCSI is measured by four weighted sub-indices and shows a mixed bag in December. Interestingly, the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index has increased by a robust 2.7 percentage points, the Investment Climate (“Investment”) Sub-Index is up by 2.4 percentage points, the PCSI Economic Expectations (“Expectations”) Sub Index, is up, 1.7 percentage points and the PCSI Employment Confidence (“Jobs”) Sub-Index has declined by 1.7 percentage points.
“After a dip in consumer sentiment in November, post Diwali, we are seeing the sentiment improving in December, with the upcoming festivities and Christmas bringing some cheer among consumers. Also, as marketers are doling out great bargains and offers leading to increased savings. We see urban consumers being flush with funds for the day-to-day running of households, investments and savings for the future and purchase of big ticket items and urban Indians also have confidence around India’s economy. Though, confidence around jobs has seen a dip; companies would be wrapping up their financial year and curtailing on new hiring; also, India is witnessing some impact of the global economic slowdown in terms of trimming of the workforce by a number of companies. With the war in Ukraine not abating, we are likely to see a greater impact on the global economy and local hiring. And this could also lead to a further rise in inflation. Cautious optimism is going to be the buzzword,” says Amit Adarkar, CEO, Ipsos India.
“The first quarter of 2023, Jan to March 2023 will be important to watch. And we’ll know how the macro forces will impact our economy and consumption and whether consumers will further feel the pinch,” added Adarkar.
