Consumer outlook improves by 2 per cent over previous month: ZyFin Research

MUMBAI: The ZyFin Consumer Outlook Index of India, a leading Macro Analytics firm focused on emerging markets has registered a score of 47.3 in June 2015 as compared to 46.5 in the previous month.

Indian Consumer’s Outlook improved by 2 per cent over previous month. This can be reflection of an optimistic employment sentiment. The insights are derived from an exclusive, monthly survey of, 3000 Indian consumers across 11 key Indian cities. This first of its kind survey provides with a real-time view on consumption,employment and inflation in India.

The monthly Consumer Outlook Index have not succeeded in breaching the 50 mark depicting optimism, while the ZyFin Business Cycle Indicator, though higher than last year, has been declining month-on-month for the last three months now.

ZyFin’s Spending Sentiment Index has improved by 4 per cent in June 2015 over previous month, suggesting a recovery in demand in the months to come. Spending Sentiment Index assesses Indian consumer’s willingness to make big-ticket purchases including homes, home appliances,four and two-wheelers in the next six months.

In May 2015, the index stepped down to 32.6 from 33.1 in the previous month which suggest 32 per cent of the consumers surveyed in June 2015 believe that inflation will alleviate in near future. There has been a recovery in the Index over the last six months, despite this moderate month on month decline attributable to statistical volatility.

This is a monthly publication providing an outlook on major economic trends based on proprietary economy and capital market indices and indicators. However, despite a strong re-bound earlier this year, the Indian economy seems to slow down once again.

Factors like high borrowing costs, waning aggregate demand and rising global financial stress are some of the key reasons holding back the domestic economy. Recent data suggests domestic consumers, one of the major drivers of the Indian GDP, are again losing faith in India’s revival.