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Indian consumers' perception of current and future economic conditions continues to improve despite geopolitical challenges and concerns over rising inflation, according to the latest Consumer Confidence Survey conducted by the Reserve Bank of India (RBI) for the 2-11 March period."Consumer confidence for the current period continued on its recovery path, witnessed since mid-2021, though the assessment compared to a year ago remained in negative zone. The current situation index improved further in March on the back of improved sentiments on general economic situation, employment, and household income," the survey noted. The current situation index improved to 71.7 in March, from 64.4 in the previous survey, conducted in January. The survey obtains current perceptions compared to a year earlier and one-year-ahead expectations on the general economic situation, employment, prices, and own income and spending. It was conducted across 5,984 households in 19 cities.
Housing Demand Holds Up
Thanks to easy availability of home loans, there was 40 per cent growth in home loan originations (value) during the December quarter from FY19 to FY22, according to a research report by credit bureau CRIF High Mark. The report analysed major consumer lending products—auto loans, two-wheeler loans, personal loans, consumer durable loans and home loans—in the quarter ended December 2021. According to the report, there was an increase in originations share (value and volume) of private banks during the quarter from FY19 to FY22. However, the share of public sector banks and home finance companies (HFCs) reduced during the same period. In the December quarter, public sector banks held the sway with 43.8 per cent in loans by value. Private banks had 36.6 per cent share; non-banking finance companies (NBFCs) had the least share at 19.6 per cent. But by volume, NBFCs led with 68.1 per cent; private banks had a share of 23.2 per cent and public sector banks the least at 8.8 per cent.
Global Consumer Sentiments Hurt On Ukraine War
Ipsos's new reading on economic sentiment around the world finds consumers losing confidence as the war in Ukraine rages on, inflation continues to rise, and COVID-19 is still lingering. The latest survey conducted between March 25 and April 8 finds that the Consumer Confidence indices of 23 countries have dropped by an average of 0.8 points since last month. This is the steepest month-over-month decrease since June 2020, erasing the gains from the past 10 months.The downward trend in consumer sentiment is led by seven countries whose National Consumer Confidence Index has declined by more than 1.5 points since last month: Germany, Belgium, Spain, China, Great Britain, Sweden, and Turkey.
Outlook:
For local consumer durables sector, the near-term focus is shifting on surge in the residential air conditioner market amid a scorching heat wave. The AC makers are looking forward to a record sale of around 90 lakh units this year, said Consumer Electronics and Appliances Manufacturers Association. Already, in April the industry has clocked the sale of around 17.5 lakh units, which is also an all-time high for the month.April this year ended as the third warmest over India in 122 years, the Monthly Weather and Climate summary issued by the India Meteorological Department (IMD) has said. This comes after March had remained the warmest over the same period.Prolonged and frequent heatwaves affected major parts of the country during last two months.
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