The extended run of the pandemic with a surge in coronavirus cases in many parts of the globe seems to have shaken consumer confidence that had built up in the beginning of 2021.

As per the March 2021 wave of the monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) for India, consumer confidence has declined by 0.8 percentage points over February 2021. The monthly PCSI, which is run by the aggregation of the four weighted sub-indices is a mixed bag.

The PCSI Investment Climate ("Investment") Sub-Index is down by 3.0 percentage points and the PCSI Economic Expectations ("Expectations") Sub Index, is same as last month (unchanged).The PCSI Employment Confidence ("Jobs") Sub-Index has moved up 1.2 percentage points; the PCSI Current Personal Financial Conditions ("Current Conditions") Sub-Index is down by 2.5 percentage points.

The index clearly brings out that while opening up of the economy post lockdown has certainly helped to give a boost to economic activity and improved employment opportunities, investment still remains sluggish as demand conditions are picking up slowly while extended run of the pandemic is still making investors jittery of putting their money in projects.

Moreover, salary cuts and job losses during the lockdown period are still continuing in some sectors, preventing a build up of confidence levels. Moreover, rising prices in wake of higher inflation have reduced the pricing power of consumers.

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