.jpg)
The MNI India Consumer Sentiment Indicator rose tothe highest level since February as consumers were increasingly confident that the government will be able to improve future economic growth and household incomes.
The MNI India Consumer Indicator rose 3.3% to 126.2 in June from 122.1 in May, as consumers’ expectations for the future improved markedly. This was the first survey since the new Modi-led government was formed in May.
All five components which make up the Consumer Indicator rose apart from the Durable Buying Conditions Indicator which remained broadly stable. Business Conditions in Five Years hit the highest level since the survey began in 2012 and contributed the most to the rise in confidence in June.
Consumers were increasingly confident about the current business climate and felt that business conditions over the short and long term would also improve. The majority of those who expected business conditions to be better in a year’s time cited the government and its policies as the main reason.
For the first time in six months, consumers were less dissatisfied with the current level of prices compared with the previous month and their expectations for inflation in 12 months’ time fell significantly to the lowest since December 2012.
Commenting on the latest survey, Chief Economist of MNI Indicators Philip Uglow said, “The rise in sentiment over the past year is a testament to the gradual recovery in the Indian economy and also to the optimism that the Indian population has that Prime Minister Modi will be able to revive growth and implement reforms to secure India‘s long-term economic future.”
“It’s now down to Modi to show he has the commitment and ability to push through his policy agenda, with the government’s first budget in July, a big test.”
