Despite the general mood of Modi optimism, consumer sentiment in India eased only slightly in September as confidence in business outlook weakened and consumers revised down their outlook for the job market, a new survey has found.
The MNI India Consumer Indicator fell to 124.1 in September from 125.2 in August. In spite of this fall, the sentiment has improved 2.3 per cent since the start of the year and is marginally more than the series’ average of 123.8.
Overall household finances have been generally weak despite consumers being slightly more optimistic about their household finances, likely the result of Diwali bonuses, the survey said.
The Employment Outlook Indicator fell to new series low in September, adding a cautionary note in the job market to the general mood of Modi optimism.
For longer term business conditions, expectations fell to the lowest since October 2013.
Consumers were optimistic about purchasing a car, mostly due to lower gas price expectations while demand for large household items was likely boosted by tax breaks included in the Budget as well as the upcoming festival season, it said.
“While consumer sentiment is up over the past year, it’s failed to receive the large Modi boost that companies in our business survey have exhibited. Respondents have yet to feel much tangible benefit and the continued deterioration in their employment outlook cautions about being too optimistic,” Chief Economist of MNI Indicators Philip Uglow said.
MNI Indicators is part of MNI, a leading provider of news and intelligence and a wholly-owned subsidiary of Deutsche Börse AG.
Data for MNI India Consumer Sentiment Survey is collected via telephone interviews for which at least 1,000 interviews were conducted each month across the country.