CON­SUMER SEN­TI­MENT TAKES A HIT

SUR­VEY AF­TER SUR­VEY SHOWS THAT CON­SUMERS ARE FEEL­ING GLOOMY ABOUT THEIR PROSPECTS. THAT IS SOME­THING THE GOV­ERN­MENT SHOULD WORRY ABOUT.

Business Today - - CONTENTS - By PROS­EN­JIT DATTA IL­LUS­TRA­TION BY AJAY THAKURI @pro­saicview

Sur­vey af­ter sur­vey shows that con­sumers are feel­ing gloomy about their prospects. that is some­thing the gov­ern­ment should worry about.

WHO IS FEEL­ING good about the econ­omy? Not con­sumers for sure. All re­cent con­sumer con­fi­dence sur­veys have largely re­it­er­ated that point. The Re­serve Bank of In­dia Con­sumer Con­fi­dence Sur­veys are prob­a­bly the most me­thod­i­cal in track­ing con­sumer sen­ti­ments. The sur­vey is done quar­terly and it in­volves a sam­ple of over 5,000 con­sumers in over 10 cities. The RBI con­sumer con­fi­dence sur­veys track both cur­rent sen­ti­ment as well as ex­pec­ta­tions of the fu­ture (Fu­ture Ex­pec­ta­tions Sur­vey). For some time now, the sen­ti­ment about their cur­rent con­di­tions have been low. The ex­pec­ta­tions of how their lives will be a year hence is also not par­tic­u­larly cheer­ful, though it is bet­ter than most peo­ple’s cur­rent sen­ti­ments.

A sec­ond sur­vey – monthly and with a smaller sam­ple – the Thom­son-Reuters/ Ip­sos In­dian Pri­mary Con­sumer Sen­ti­ment sur­vey also shows sim­i­lar trends about the cur­rent sit­u­a­tion. Though it is more in the na­ture of a dip­stick study, it does show a wors­en­ing sen­ti­ment which should worry the gov­ern­ment. Mean­while, Con­sumer Sen­ti­ment as stud­ied by CMIE is also show­ing a wors­en­ing trend.

Given that con­sumer spend­ing was one of the big driv­ers of cur­rent growth (the other be­ing gov­ern­ment spend­ing), the wors­en­ing con­sumer sen­ti­ments do not au­gur well for the econ­omy.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.