.jpg)
The MNI India Consumer Indicator bounced back in October following four consecutive monthly falls, although the increase was mainly due to a seasonal pick- up in sentiment rather than a change in the underlying trend.
The Consumer Indicator rose 3.7% to 120.2 in October from 115.9 in September, the largest percentage monthly gain since the series began in November 2012. In spite of the large rise in October, sentiment was still 5.9% down since the start of the year and was also below the series average of 123.2.
The October increase was driven by a higher percentage of consumers who felt it was a good time to buy a large household item, due to the start of the festive season sales. A 9.9% increase in the Durable Buying Conditions Indicator more than offset the 9.7% decline in September.
Four out of five components which contribute to the India Consumer Indicator increased in October, with Current Personal Finances the only indicator that declined on the month.
Both current and future measures of confidence recovered in October after posting record lows in September.
Commenting on the latest survey, MNI Indicators Chief Economist Philip Uglow said, “The festive season helped boost consumer confidence in October.”
“But in spite of the festivities and deep discounts, sentiment was still down compared with the start of the year as high prices and worries over the state of the economy continued to bear down on confidence,” he added.
