India's consumer sentiment has dipped in August 2020 by 1.6 percentage points, according to the monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI).
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, has shown a drop for at least 3 of the 4 indices in August, a statement from Ipsos said.
The PCSI Employment Confidence Sub-Index has fallen by a significant 4.5 percentage points and the Economic Expectations Sub Index slid by 1.4 percentage points.
The Current Personal Financial Conditions Sub-Index is down by 0.4 percentage points, while the Investment Climate Sub-Index has slightly moved up by 0.2 percentage points.
"Everything is unlocked except the containment zones, but since the pandemic is far from over, offices and commercial establishments are working in a staggered way - so technically, not to the optimum capacity. The ongoing pandemic and the ad hoc/short duration lockdowns have severely impacted the smooth functioning of establishments, staving off jobs by hundreds and thousands," said Amit Adarkar, CEO, Ipsos India.
He said that while the economy is on a painful and long drawn rebound, job creation is the biggest challenge facing the nation.
"We are not talking about the migrant workers here. Blue and white collar workers are affected too. Absence of some rebound on job creation front would lead to further lowering of the sentiment in future. Confidence in the economy is somewhat shaky and rising inflation is not making things easy. We need more jobs, definitely, on a war footing, even as we fight the virus," he said.