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The MNI India Consumer Indicator remained broadly stable in April, with consumers very much in wait-and-see mode before the general election concludes on May 12.
Following a small decline in March and a rise to a 14-month high in February, the Consumer Indicator stood at 125.2 in April compared with 125.8 in March. Consumer sentiment was the lowest in three months but above the level seen in the same period a year earlier.
In April, two out of the five components which make up the MNI India Consumer Indicator declined. Current Personal Finances improved but consumers remained less optimistic about future Personal Finances, which fell for the second month in a row. Marred by inflation, consumers were less confident about purchasing a large household item in April.
Consumers were more hopeful about Business Conditions in One Year and their longer term expectations hit a record high, on the belief that the new government will be able to turn the economy around.
With no respite from inflation, the level of dissatisfaction about prices rose to the highest level since records began in November 2012.
Commenting on the latest survey, Chief Economist of MNI Indicators Philip Uglow said, “Consumer sentiment remained reasonably upbeat, helped by hopes that business conditions will improve over the coming year, not least after the government is formed.”
“Consumers, though, remain concerned about the continued high level of inflation which is eating into their spending power. While monetary policy can play its part to tackle inflation, the government needs to take a more proactive role to improve supply networks and boost investment in the retail sector.”
