Optimism remains high despite expectations of lower income: McKinsey survey

The finding is among the key conclusions of the survey based on data collected in India from March 27–30. It was published on the research firm’s website.

To curb the rapid spread of COVID-19 The Government of India announced a three-week-long nationwide lockdown starting March 24. Market research firm McKinsey & Company’s report ‘Indian consumer sentiment during the coronavirus crisis’ suggests that about half of Indians (of consumers surveyed) say they are highly optimistic of an economic rebound within the next two or three months. They also expect a short-term reduction in income and savings, and a need to spend cautiously or cut back. Most consumers say they are very concerned with the safety of their family, followed by overall public health, and the economy.

It is based on survey data collected in India from March 27–30, 2020. The complete report can be accessed here.

Key findings:

• 52 per cent of respondents are optimistic that the economy will rebound in the next 2-3 months.

• While 64 per cent think that they haven’t been personally affected by the crisis, a majority is expecting to cut down on spending.

• One of two Indians expect a reduction in income in the comings weeks which is further leading to cuts in expected spending across most discretionary categories.

• Positive online spending is expected for essentials and in home entertainment.

• Indians are shifting to consumption of live news and media.