Consumer Sentiment continued the downward trend in May, after April’s dip, according to the Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) monthly report for India.

Consumer Sentiment is down 0.6 percentage points in May, as per the report. The sentiment has dipped for at least three of the four sub-indices. It is down for personal finances and investments while there has been no change in sentiment for the economy.

As per the report, the Investment Climate (“Investment”) Sub-Index is down 0.7 percentage points; the PCSI Current Personal Financial Conditions (“Current Conditions”) Sub-Index has declined 1.2 percentage points while the PCSI Economic Expectations (“Expectations”) Sub Index, is equivalent to last wave. The PCSI Employment Confidence (“Jobs”) Sub-Index is down 0.2 percentage points, over the previous month.

According to Amit Adarkar, Ipsos India, CEO, “Rising fuel prices and inflation have impacted personal finances for day to day running of households the most. Cost of living is steadily increasing due to the ongoing Ukraine war, as the cost of crude oil price per barrel is increasing on a daily basis.”

“The war needs to end soon, else it will negatively impact most global economies of the world, including that of India in the long term. This is worrisome for India, as it is already trying hard to recover from the collateral impact of the pandemic, looking to rebound,”Adarkar added. 

These are findings of an Ipsos online poll conducted April 22–May 6. For the survey, a sample of 500 adults from Ipsos’ India online panel aged 16-64 years was interviewed online.