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The MNI India Consumer Indicator increased to the highest level since December 2012, driven by a rise in both current and future expectations.
The Consumer Indicator increased 5.4% on the month to 127.8 in February from 121.2 in January. The latest increase left sentiment 4% above the same level a year ago, the first annual rise on record following three months of declines.
In February, all five components which make up the India Consumer Indicator increased. The Current Indicator rose to 118.4 from 113.2 in January and the Expectations Indicator increased to 134.2 from 126.6 in January, a rise of 6% on the month.
The Real Estate Investment Indicator, which gauges whether it is a good time to invest in the housing market, rose close to levels last seen in April 2013 when it hit a record high. There was a significant increase in the proportion of respondents who said it was an excellent or a good time to buy a house.
Concerns over the current level of prices and expectations for inflation in a year’s time increased further in February.
Commenting on the latest survey, Chief Economist of MNI Indicators Philip Uglow said, “The sharp rise in consumer confidence in February is encouraging and represents a stark turnaround from the lows seen in 2013.”
“Most consumers believe that the worst is behind them and expect that 2014 will be more prosperous. It will, though, be another challenging year for India. Many hopes are pinned on the elections in May which are expected to bring significant reforms and provide an economic boost.”
