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The MNI India Consumer Indicator declined for the fourth consecutive month in September, to the lowest level since the series started in November 2012 amid tepid economic growth, the weakness in the rupee and continued high inflation.
The Consumer Indicator fell to 115.9 in September from 118.7 in August, nearly 9.0% down since the start of the year. Sentiment has trended downwards since November and has only posted monthly rises in two months, April and May.
The decline was led by a sharp fall in the percentage of consumers who felt it was a good time to buy a large household item, likely due to the current economic uncertainty India has been facing.
Four out of the five components of the Consumer Indicator fell in September, with Current Personal Finances the only indicator to rise in September compared with last month.
Concerns over employment and inflation intensified with price expectations hitting a series high.
Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said, “With growth weak, prices rising and worries over employment intensifying, it wasn’t too surprising to see consumer sentiment hit a record low this month.”
“Some stabilisation in the economic environment could stem the decline, but confidence is unlikely to increase significantly until growth picks up and inflationeases,” he added.
