|
Indian consumer sentiment picked up in June in a broad based improvement which saw greater optimism towards buying conditions and the business environment.
The MNI India Consumer Sentiment Indicator increased 2.7% on the month to 114.7 in June from 111.7 in May, offsetting last month’s fall. The increase in the Consumer Indicator was led by a rise in both the current and expectations measures.
Confidence in the current business environment increased, with the indicator rising above the 100 neutral level for the first time in seven months, which in turn underpinned sentiment towards both short- and long-term business conditions.
Buying conditions for IT products, phones and other appliances improved in June, while the wider measure of Durable Buying Conditions rose to a 21-month high. If the increase is sustained, it could result in a turnaround in consumer spending.
There was good news for the automobile sector as consumers revised up their expectations for car purchases over the coming year even though gas price expectations continued to increase. The Car Purchase Expectations Indicator bounced back following a decline into contraction for the first time in nine months in May. Panellists were also more keen on buying a two-wheeler in the next 12 months, although they remained in a minority.
Consumers were less dissatisfied with prices in June, although dissatisfaction remained at a high level. Expectations for inflation in the coming 12 months were also revised lower.
Commenting on the latest survey, Chief Economist of MNI Indicators Philip Uglow said, “There are a number of positives to take away from the June survey. The MNI India Consumer Sentiment Indicator hit the highest since September 2015 and measures including personal finances and business conditions have all improved from the lows seen around the turn of the year. Still, respondents remain concerned about the outlook for employment which could well cap any further gains.”
|
.jpg)
