Consumer Sentiment Shows Recovery In Sept After 2-month Dip
India has ranked second among 29 countries on the national index score as the consumer sentiment has shown improvement
After witnessing a slight dip in July and August 2024, the consumer sentiment among urban Indians has improved and showed recovery in September 2024, as per the LSEG-Ipsos primary consumer sentiment index (PCSI) India report. The index has reported an uptick of 0.4 percentage points for the month. India has ranked second among 29 countries on the national index score.
As per the report, the sentiment for the PCSI employment confidence sub-index has seen an uptick of 1.1 percentage points, highlighting that sentiment for jobs has seen a positive response. In addition, the sentiment for PSCI's current personal financial conditions sub-index is also up 0.3 percentage points.
“Consumer sentiment has shown recovery after being downbeat last month. Apart from the overall upswing in consumer confidence this month, the sentiment has shown recovery for daily household spending, savings, economic growth and jobs. H1 (first half of the year) saw major cutbacks by companies due to tough macro conditions and the global economic slowdown, global inflationary conditions and job cuts,” states Amit Adarkar, Chief Executive Officer, Ipsos India.
Marking a positive sentiment for the investments and better expectations, the PCSI investment climate sub-index is up 0.1 percentage points and the PCSI economic expectations sub-index is up 0.5 percentage points for the month.
“Sentiment around jobs improved last month, and this month too consumers are bullish about the job market and hiring. India is also recovering from the havoc unleashed by extreme weather conditions, in terms of flooding and landslides through July and August,” adds Adarkar.
India has ranked second on the national index score across 29 markets as Singapore held the highest national index score. Indonesia managed to secure the third spot in the list. These three countries are the only ones with a score of 60 or higher.
“Notably, India has stayed among the top 3 markets with high national index scores and stayed resilient despite several global crises popping up one after the other. Being a growth-oriented emerging market and its economy resting greatly on domestic consumption, we have been able to offset the extreme impact,” highlights Adarkar.
With a good monsoon this year and the festival season reaching its pinnacle in the upcoming months, consumer sentiment is expected to witness a major boost after going through a tough phase during the first half of the year.
