- The Genesis India Consumer Indicator (GICI) remained broadly stable at 60.00 in June compared with 60.45 in May.
- It appears that the hike in interest rates by the Reserve Bank of India has done little to dent sentiment. More than 67% of survey responses came after the 25 basis points rise to 6.25% on June 6. Instead, consumers appear to be benefitting from the improved economic conditions.
- Consumer confidence rose significantly in the Apr-Jun quarter to 59.83 from 54.39 in the Jan-Mar quarter, with all components of the indicator posting increases. The most significant gain over this period came from a 17.6% improvement in consumers’ perception of business conditions compared with a year earlier.
- Between May and June, four of the five components which comprise the GICI fell slightly. These falls were broadly offset by an improvement in consumers’ views about their expectations for household finances over the coming year.
- Renewed inflationary pressures were clearly felt by respondents in June with their satisfaction with prices of essential commodities falling to 22.23 from 37.02 in May, the lowest since December 2017.
- The improving economic backdrop bodes well for the automotive sector with a record number of consumers in June thinking it was a good time to buy either a car or two-wheeler. Maruti-Suzuki was the top preferred car brand while Honda was the top two-wheeler brand.
- In a special question this month consumers were asked which supermarket they preferred to shop at. More than a third of respondents named Big Bazaar as their favourite, with D-Mart some way back in second place.
Chief Economist of GMMR, Philip Uglow, said “Despite the hike in interest rates from the RBI at the start of June, consumer sentiment remained broadly unchanged on the month, with consumers still relatively upbeat. Confidence is up significantly since the start of the year as consumers are benefitting from the revival in growth.”
“Buying conditions for consumer durables are firm and automobile manufacturers should benefit from an increased proclivity for car purchase among our respondents.”