After months of decline, consumer confidence in India witnessed an uptick of 2.9 percentage points, according to a consumer sentiment index jointly prepared by Thomson Reuters and IPSOS.
According to the ‘India Primary Consumer Sentiment Index’ (PCSI), low interest rates, among other sops and deals helped boost consumer confidence.
“After months of pessimism, consumer confidence has shown recovery of 2.9 percentage points in November 2019, with marketers unleashing a bonanza for consumers, by low interest, almost 100 per cent financing, sops and deals, lifting the mood and infusing positivity,” a statement from IPSOS said.
The monthly PCSI is driven by the aggregation of the four weighted sub-indices. In November, three of the four indices rose, barring that of jobs.
The PCSI Employment Confidence (jobs) Sub-Index is down by 1.1 percentage points. The Eonomic Expectations Sub Index, is up by 1.2 percentage points, and the Investment Climate Sub-Index rose by by 5.5 percentage points.
The Current Personal Financial Conditions Sub-Index shot up by a significant 6.5 percentage points, over last month, the statement said.
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“The festival season has lifted the mood as marketers doled out easy finance schemes for consumers to buy or upgrade durables — even automotive companies saw more cars driving out of their showrooms — Diwali, historically has been the time for big ticket purchases, even as the consumers loosened their purse strings,” said Amit Adarkar, CEO, Ipsos India.
As jobs continued to bother consumers, an upturn in employment confidence in future would be critical for sustaining consumer sentiment, he added. (IANS)