Consumer confidence in India witnessed a freefall in May due to the nationwide lockdown and the coronavirus pandemic, according to the Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI).
The monthly Refinitiv-Ipsos PCSI for India has sharply fallen by 8.9 percentage points, an Ipsos statement said.
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has continued with the downward trend seen in April 2020 and has nosedived in May 2020, due to the growing pessimism.
The PCSI Employment Confidence Sub-Index is down by 5.3 percentage points, and the PCSI Economic Expectations Sub Index has receded by 7.9 percentage points. The Investment Climate Sub-Index has dropped by 12.9 percentage points and the Current Personal Financial Conditions Sub-Index too has plummeted by 11.7 percentage points over the previous month.
“The unending Covid-19 crisis and these long periods of shutdown are now hitting the consumers livelihood and pockets, impacting their propensity to spend and save. While the virus is resilient and not going away, with strict measures of hygiene and social distancing, we should aim at building up some of the pillars of the economy — manufacturing, agriculture, MSMEs, e-commerce and staggered functioning of offices,” said Amit Adarkar, CEO, Ipsos India.
“Earlier the govt’s complete focus was on health, now it has changed gears to majorly resurrecting the Indian economy,” he added.