Consumer Confidence for urban Indians has shown mild recovery in June 2021 with a slight uptick of 1.4 percentage points, over the previous month, according to the monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI).
The marginal recovery comes after a sharp plunge of 6.3 percentage points in May, due to the resurgence of the outbreak.
The monthly PCSI, which is driven by the aggregation of the four weighted sub-indices, is a mixed bag. The PCSI Employment Confidence Sub-Index is down by 0.1 percentage points, the Current Personal Financial Conditions Sub-Index is slightly up by 0.1 percentage points.
The Investment Climate Sub-Index has increased by 0.8 percentage points and the Economic Expectations Sub Index, has significantly moved up by 4.6 percentage points.
Amit Adarkar, CEO, Ipsos India, said: "The second wave was very fierce and we saw its impact last month. With lockdowns, restrictions, ramping up of infrastructure for oxygen supply and gearing up hospitals for the influx of those afflicted, we are now past the peak and the consumer sentiment reflects this."
"We are also seeing restrictions, somewhat easing and the vaccination drive has picked up again. Confidence around jobs is on the blink but sentiment on personal finances and savings and investments has improved a bit."
He added that confidence around the economy is seeing a major surge, and this is in sync with stock markets reaching new peak recently.
"Treading with caution will need to be the buzzword until herd immunity is not achieved. Further relaxation of restrictions and rapid vaccination scale-up post June 21 will be key to consumer sentiment. A looming threat of a possible third wave denotes that we are not out of the woods yet, especially as most of the other major economies are showing a sustained rebound in consumer sentiment," Adarkar said.
