Domestic consumer sentiment in September dipped to its lowest level since November 2012 as households were increasingly pessimistic about their finances amid sluggish demand conditions, a Deutsche Borse survey said.
The MNI India Consumer Sentiment Indicator fell 3.2 per cent to 115.3 in September from 119.1 in August, the lowest level since the survey began in November 2012.
While the indicator remains above the 100-point mark, which separates optimists from pessimists, it has been gradually trending down since last year, suggesting that demand continues to remain sluggish. “Most observers tend to agree that the long-term outlook for India is positive, with equity markets having taken their cues from a wave of Modi optimism.”
“Seen through the eyes of our survey respondents though, the short-to-medium-term outlook looks less compelling, with consumer confidence at a record low and little sign of a quick turnaround,” MNI Indicators Chief Economist Philip Uglow said.
The survey respondents were the least optimistic about their household finances, with both current and future measures of personal finances falling to record lows.