Confidence over job scenario, economic prospects remain subdued in July

Confidence of urban Indians over the employment scenario in the country and the economic prospects remains subdued although the overall consumer confidence has recorded in uptick in July.

As per the Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI), the Employment Confidence Sub-Index is down by 0.1 percentage points, and the Economic Expectations Sub Index, has reduced by 1.8 percentage points.

The Primary Consumer Sentiment Index (PCSI), which constitutes of four sub-indices slightly improved by 1.1 percentage points in July 2021, over the previous month.

The overall growth can be attributed to improved sentiments in terms of investment climate and personal finance conditions.

The PCSI Investment Climate Sub-Index is up by a significant 3.7 percentage points, while the Current Personal Financial Conditions Sub-Index has also recovered by a healthy 3.5 percentage points.

“Easing of restrictions and reopening since June has positively impacted livelihoods and we are seeing a robust uptick in sentiment for personal finances (for day to day running of households) and for investments (savings and investing for the future),” said Amit Adarkar, CEO, Ipsos India.

“However, the recovery around jobs and particularly the economy is slow and unless the mass immunisation becomes a reality, we are likely to see the government working with utmost caution, to mitigate another wave of infections. And hence the economy may take longer to get back on grid. Which I believe we’ll need to accept because the corona virus threat is still far from over, with many other countries facing the onset of a new wave,” Adarkar added.