Consumer confidence weakens in June 2023: Report

As per the report, consumer confidence for urban Indians weakens in June 2023 by 2.6 percentage points and sentiment goes down for jobs, savings and investments for the future, personal finances and the economy.

Consumer confidence for urban Indians has weakened in June 2023 and slumped by 2.6 percentage points over the previous month, according to the Refinitiv-Ipsos India Primary Consumer Sentiment (“Consumer Confidence”) Index (“PCSI”). 

The monthly PCSI result which is driven by the aggregation of the four, weighted, sub-Indices, has fallen across all the 4 sub-indices:  the PCSI Employment Confidence (“Jobs”) Sub- Index is down 5.0 percentage points; the PCSI Economic Expectations (“Expectations”) Sub-Index has decreased 4.0 percentage points; the PCSI Investment Climate (“Investment”) Sub-Index is down 1.1 percentage points; and the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index which has declined 0.7 percentage points over last month.

Since March 2023, Ipsos India has moved the survey from covering only netizens to include an expanded offline sample, using the Ipsos IndiaBus – 1800 offline sample + 400 online sample, covering 16 cities across the length and breadth of the country, scientifically chosen, providing a more realistic picture.   

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 Commenting on the findings of the survey, Amit Adarkar, CEO, Ipsos India said, “Demand for jobs continues to far outstrip supply and most companies are going slow with recruitment due to the global slowdown, because of a prolonged war and high inflation levels. Unfortunately, the Indian economy is not insulated and has been impacted. The rupee has been weakening against the dollar, though India has been showing a lot of resilience through checks and balances via cheap import of oil, giving a boost to domestic consumption.”

“Citizens also are feeling the pinch around personal finances for day to day running of households and investments and savings. Travel and holiday shopping also could be upsetting the household budgets,” added Adarkar.          

Ipsos IndiaBus is a monthly pan India omnibus (which also runs multiple client surveys), that uses a structured questionnaire and is conducted by Ipsos India on diverse topics among 2200+ respondents from SEC A, B and C households, covering adults of both genders from all four zones in the country. The survey is conducted in metros, tier1, tier 2 and tier 3 towns, providing a more robust and representative view of urban Indians. The respondents were polled face to face and online. We have city-level quota for each demographic segments that ensure the waves are identical and no additional sampling error. The data is weighted by demographics and city-class population to arrive at national average.

How do all 29 markets stack up?

India is ranked fifth in the pecking order in consumer confidence across all 29 markets covered in the survey, in June 2023.