Chennai: Consumer confidence (on financial preparedness for the future) stands low in comparison to 2019, according to a study titled ‘Life Freedom Index (LFI)’ by HDFC Life.
It said in 2021, the index has seen a drop of 4.8 points vis-a-vis that of 2019 indicating the impact of Covid-19.
“Consumer confidence has been low post the two waves. Current financial plans seem inadequate. Hence the most significant drop is observed in the financial sufficiency and adequacy index,” it said.
According to the study, the impact of Covid is more severe across metros in comparison to Tier 1 and Tier 2 cities.
Nuclear families have been the most impacted with an LFI drop of 10.5 points while joint families have been stable, possibly due to a better support system in the time of crisis.
“Almost 90 per cent consumers have faced salary cuts or business losses to some extent, due to which the respondents are still concerned about Covid-19”.