India has secured the second position in the latest LSEG-Ipsos Primary Consumer Sentiment Index (PCSI) report for September 2024, with a national index score of 62. This places India just behind Singapore, which topped the list with a score of 62.5. Notably, Indonesia is the only other country to achieve a national index score of 60 or higher for September 2024, with a score of 61.5.
The data for these rankings is derived from a monthly survey conducted by Ipsos across 29 countries on its Global Advisor online survey platform, and specifically in India on its IndiaBus platform. These findings are reported each month by LSEG as the PCSI.
In addition to India, Singapore, and Indonesia, there are 11 other countries that obtained a National Index score of 50 and above in the study. These countries include the Netherlands (57.4), Mexico (55.9), the USA (55.0), Great Britain (54.1), Sweden (54.0), Germany (53.7), Thailand (52.1), Brazil (51.3), Malaysia (51.2), South Africa (50.5), and Australia (50.2).
On the other hand, only four countries showed a National Index below the 40-point mark in the study: South Korea (39.7), Japan (39.4), Hungary (36.4), and Türkiye (30.8).
Amit Adarkar, CEO of Ipsos India, commented on India’s performance in the consumer confidence study, highlighting the country’s resilience in the face of global crises. He noted that despite challenges, India has managed to maintain high national index scores, attributing this to being a growth-oriented emerging market with a strong focus on domestic consumption. Adarkar acknowledged the impact of the global economic slowdown on the Indian rupee but expressed optimism about India’s ability to navigate these challenges.
The sentiment in India regarding consumer confidence has shown improvement and recovery in September 2024, according to the LSEG-Ipsos PCSI India report. The report analyzes consumer sentiment across four sub-indices: Jobs, Current Conditions, Investment, and Expectations.
India has demonstrated growth in all four sub-indices, with Jobs reporting a growth of +1.1%, Current Conditions up by +0.3%, Investment increasing by +0.1%, and Expectations showing a rise of +0.5%. Adarkar pointed out that despite a tough first half of the year marked by economic challenges, India is poised for a stronger performance in the second half of 2024.
Consumer sentiment in India has shown signs of recovery after a period of decline, particularly in relation to daily household spending, savings, economic growth, and job prospects. Adarkar credited factors such as a good monsoon season and the upcoming festival season for boosting consumer sentiment in India. He emphasized the positive outlook for job market conditions and highlighted the country’s resilience in the face of recent extreme weather events.
The LSEG/Ipsos PCSI survey, conducted since 2010, tracks consumer attitudes on local economies, personal finance, savings, and investment confidence. The survey involves interviews with over 21,200 adults across 28 countries, with India’s sample covering 2,200 individuals through a combination of face-to-face and online interviews.
With the consumer confidence study highlighting India’s strong performance and positive outlook, the country is poised to navigate ongoing challenges and maintain its position among the top markets in terms of consumer sentiment. The resilience and optimism exhibited by Indian consumers bode well for the economic trajectory in the months ahead.
Factors Driving India’s Consumer Confidence
Amidst global economic uncertainties and challenges, India’s consumer confidence has remained relatively robust, as evidenced by its high national index score in the latest study. Several factors contribute to this positive sentiment in the Indian market:
1. **Domestic Consumption Focus**: India’s economy relies significantly on domestic consumption, which has helped offset the impact of global economic slowdowns and crises. This focus on internal demand has supported consumer confidence and economic resilience in the country.
2. **Festival Season Boost**: The ongoing festival season in India, including Navratri and Diwali, has traditionally been a period of increased consumer spending and economic activity. The festive spirit and associated celebrations often lead to a boost in consumer sentiment and economic growth.
3. **Job Market Optimism**: Improvements in the job market and hiring outlook have contributed to consumer confidence in India. The positive sentiment around employment opportunities and job security has bolstered overall economic optimism among Indian consumers.
4. **Recovery from Extreme Weather Events**: India’s ability to recover from the impact of extreme weather events, such as flooding and landslides, has demonstrated the country’s resilience. The ability to bounce back from natural disasters and continue economic activities contributes to consumer optimism.
Future Outlook and Economic Prospects
Looking ahead, India is expected to maintain its positive consumer sentiment and economic momentum, supported by various factors such as the festive season, job market improvements, and a focus on domestic consumption. The country’s resilience in the face of global challenges and its ability to navigate economic uncertainties position it favorably for continued growth and stability.
As India continues to prioritize economic reforms, infrastructure development, and investment opportunities, the consumer confidence index is likely to reflect sustained optimism and growth in the coming months. With a strong foundation of domestic demand and a dynamic market environment, India remains a key player in the global economy and consumer sentiment landscape.
