Research shows that consumer spending to get recovery
The ZyFin Research’s Consumer Outlook Index data for the month of July 2014 indicates that the consumer spending is bound for a gradual recovery in recent times. This is based on the steady improvement in consumers’ plans to make big-ticket purchases since April 2014, driven by a perceived improvement in economic conditions.
Apart from any other rise in inflationary pressures, an uptick in actual sales of homes, vehicles and durables can, therefore, be expected over the next six months. The Consumer Outlook Index, a barometer for consumer confidence, reflects current and future spending plans, employment and inflation outlook of urban Indian consumers.
The index is simply based on a monthly survey of 4,000 consumers in 18 cities across India. It very well captures the differences across cities and demographic consumer segments, which is important when taking into the fact the hugely heterogeneous urban Indian population. In July 2014, of the 18 cities surveyed, 11 showed improvement in consumer sentiment as compared to the previous month. Hyderabad, Mangalore, Mumbai and Guwahati registered the best overall scores for the month. The next research will show on whether the expected recovery has taken place.
Source: The Financial Express
heterogeneous urban Indian population, inflation outlook, urban Indian consumers, ZyFin Research
