A supportive undertone in economic growth is working in favor of the consumer durables demand in India. The Finance Ministry stated in a latest monthly update that the Indian economy has been remarkably resilient amid a global slowdown, buoyed by solid domestic demand. The supply-side economy in FY24 so far vindicates the confidence.In the agriculture sector, rapid progress in the procurement of wheat and rice has ensured a continuous increase in food buffers. Rural demand has sustained sequential momentum in Q2 of FY24 as incomes from foodgrain production have been stable and inflationary pressures moderate. At the same time, increasing production and expansion in sales have been driving growth in the manufacturing sector. Services activity has also been expanding, driven by favourable demand conditions and a strong influx of new businesses.The Finance Ministry noted that despite rising input costs, overall sentiment in the services sector remains upbeat, driven, among others; by an upswing in the tourism and hotel industry as leisure and business travel pick up momentum. On the demand side, private final consumption expenditure (PFCE) has emerged as the strongest driver of India’s growth so far in FY24. The festive season has further strengthened consumption demand..

All-India House Price Index growth moderates to 3.4% in Q2FY-24: RBI

The domestic real estate market has been in a good shape in recent months, keeping the demand for consumer electronics and white goods well supported. All-India HPI growth (y-o-y) moderated to 3.4 per cent in Q2:2023-24 from 5.1 per cent in the previous quarter and 4.5 per cent a year ago; annual growth in HPI varied widely across the cities - ranging from the high growth of 6.5 per cent (Chennai) to a contraction of 0.2 per cent (Jaipur), the Reserve Bank of India stated. On a sequential (q-o-q) basis, all-India HPI contracted by 1.2 per cent in Q2:2023-24; seven of the ten cities witnessed price increase in housing registration during the latest quarter. Despite the moderation in aggregate prices, the undertone remains positive for the housing demand as post pandemic rebound continues to hold sway.

Global TV shipments are expected to fall by 2.1% in 2023

Global TV shipments are expected to fall below 197 million units in 2023, a 2.1% YoY decrease, according to TrendForce. This would be the lowest shipment volume in nearly a decade. TV panel price increases led brands to scale back promotions, impacting shipments of higher-end models like 8K and QLED TVs. The outlook for 2024 shipments is uncertain. A slight rebound of 0.2% growth is expected thanks to major sporting events, but production constraints and economic risks could cause volumes to decline instead.

TrendForce attributes the decline to constrained consumer budgets in Europe and the United States due to high interest rates, as well as a real estate slump in China suppressing demand. Moreover, a sharp rise in TV panel pricing this year led brands to minimize promotional campaigns, further dampening shipments. Although quarterly TV shipments exhibited some growth in 2023, the critical Q4 peak season saw muted shipment expansion of just 4.7% YoY. With tepid holiday sales volumes, TV demand has been prematurely exhausted worldwide, with changing consumer habits and lingering economic uncertainty hindering a recovery.

Outlook:

The upbeat demand of white goods and overall positive economic vibes are being felt in India’s demand for power. The Union Minister for Power and New & Renewable Energy R. K. Singh has noted that India’s power demand has increased at an unprecedented rate due to rapid growth of the economy. India needs 24x7 availability of power for its economic growth; and we are not going to compromise on availability of power for growth. The Index of Industrial Production for consumer durables stood at 125 in September 2023, up 0.97% on year. White this annual growth marks a sharp moderation compared to the prior month, the index itself is at a 14 month high.