India tops global consumer sentiment index: LSEG-Ipsos report

The July 2024 analysis of the LSEG-Ipsos Primary Consumer Sentiment Index (PCSI) shows India retaining the top spot across 29 countries covered in the survey, with the highest national index score of 64.5. The country has displayed the highest consumer sentiment, despite the sentiment lowering by -0.7 percentage points in July 2024.

These findings are based on data from a monthly 29-country survey conducted by Ipsos on its global advisor online survey platform and, in India, on its IndiaBus platform. They are first reported each month by LSEG as the Primary Consumer Sentiment Index (PCSI).

The results are based on interviews with over 21,200 adults in countries including India, Canada, Israel, Malaysia, South Africa, Türkiye, the United States, Thailand, Indonesia and Singapore.

India and Indonesia (62.3) are the only countries with a National Index score of 60 or higher. 11 other countries now show a national index above the 50-point mark. These are Mexico (59.3), the Netherlands (56.6), Sweden (56.4), the U.S. (56.0), Malaysia (53.5), Singapore (52.2), Brazil (51.6), Great Britain (51.3), Germany (51.1), Spain (50.8) and Thailand (50.6).

Notably, Spain’s national index score is the highest for the country since tracking began back in March 2010. In contrast, just four countries show a national index below the 40-point mark: Japan (37.6), Hungary (37.4), Peru (36.3), and Türkiye (32.9).

The survey evaluates how consumers perceive their local and national economic conditions, their financial health, savings, and their willingness to invest. These perceptions influence their purchasing decisions. Companies use this sentiment and related data to refine their inventory, adjust placement strategies, and tailor marketing messages.

Since the start of the year, Indian consumers have been prudent with their spending, especially as the country headed towards general elections. Moreover, the ongoing wars in Ukraine and Middle East, have also seen them become more cautious with discretionary spends, with many people leaning towards saving rather then spending.

The LSEG-Ipsos PCSI maps consumer sentiment on four sub-indices. While sentiment around the PCSI current personal financial conditions sub index (Current Conditions) was up +0.1 percentage points, sentiment around the PCSI Employment Confidence (Jobs) sub-index has seen a minor dip of -0.2 percentage points.

The PCSI Investment Climate (Investment) sub-index, too, has seen a minor dip of -0.2 percentage points as has the PCSI Economic Expectations (Expectations) sub-index, which dropped by -3.2 percentage points. 

Amit Adarkar, CEO of Ipsos India.

Amit Adarkar, CEO of Ipsos India said, "India being the highest on the national index score despite all the global ongoing disruptions, speaks volumes about our resilience and our demographic dividend steering our economy through domestic consumption. The good news is that personal finances have seen an uptick which means consumers have funds for day to day spends and running their households.”

He added that confidence is slightly shaken around the economy, as there is a global economic slowdown and in India too there was an initial setback on the government being a coalition one with external support. “However, after the Union Budget, the dust has settled and both partners of Telugu Desam Party and Janta Dal (United) have vowed unstinting support to the central government to last its full term of five years. Things are back on grid and bode well for the economy and the confidence of the people in the system,” he pointed out.

Compared to 12 months ago, eight countries have shown a significant drop in consumer sentiment. In contrast, thirteen countries have shown a significant increase, most of all in Argentina (+9.0), India (+7.7), and South Africa (+7.6).