CHART OF THE WEEK 📈
High inflation and interest rates don't seem to be bothering consumers at all. Low unemployment rates and a structural increase in India’s consumption seem to be driving consumer purchases to an all-time high.
The latest CMIE Consumer Pyramids Household Survey (CPHS), showed that the consumer sentiment index rose to a 30-month high.
The consumer sentiment index rose by 7.1% in September 2022, just before the festive season
The survey found that the percentage of families who were likely to purchase consumer durables rose sharply to 16.2% in September 2022, from 10.9% in August 2022
Consumer expectations increased in both urban and rural areas, although the raise in urban areas was significantly higher. In comparison to urban areas, people in rural India are much less bullish on their earning prospects for the coming year
Consumers were much more likely to spend money on consumer durables. Almost a quarter of all families felt that now was a better time to acquire consumer durables than it had been the previous year. This is very promising for the ensuing festival season
This also seems to be in sync with data from other sources and indicators.
The recent Redseer 2022 E-commerce Festive Sales report showed that the online retail market touched US$ 5.7 billion in GMV (Gross Merchandise Value), which is higher than last year by 27%, during the first week of the festive season.
Inflation or not, people are buying!