[ad_1]
NEW DELHI: Domestic urban consumption accelerated to a three-month high in September, boosted by moderating price pressures, a pick-up in Southwest monsoon performance along with the onset of the festive season, data showed on Monday.
“Urban consumption index rose to a 3-month high of 0.66 in September 2023 from 0.62 in August 2023, though still remaining below the recent peak of 0.70 as of May 2023,” according to the TRUC index prepared by economic advisory firm QuantEco Research.
It said that urban recovery was led by strong passenger vehicle sales and air passenger traffic, and aided by a moderation in retail urban inflation. Rural consumption posted a sharper improvement, with the index rising to 0.65 in September 2023 from 0.57 in August 2023, led by seasonal pick-up in tractor sales, pre-festive season led buoyancy in two-wheeler sales… also supported by correction in CPI rural inflation,” according to the index. The economic advisory firm introduced the index to track consumption both in urban and rural areas and aims to fill a key data gap to help businesses provide a better picture of the consumption pattern in the country.
Several data points such as passenger car sales, air traffic and other consumer trends had pointed to a pick-up in consumption, which had slowed as inflation surged and interest rates tightened.
Latest data showed retail inflation slowed to a four-month low in October as prices of some food items and fuel moderated, sliding a shade below the 5% mark and providing much-needed relief from stubborn price pressures and triggering hopes of a possible interest rate cut in the next year.
The report said that with Diwali being late this year, the festive season thrust to demand is likely to remain intact in October 2023 as well.
“Urban consumption index rose to a 3-month high of 0.66 in September 2023 from 0.62 in August 2023, though still remaining below the recent peak of 0.70 as of May 2023,” according to the TRUC index prepared by economic advisory firm QuantEco Research.
It said that urban recovery was led by strong passenger vehicle sales and air passenger traffic, and aided by a moderation in retail urban inflation. Rural consumption posted a sharper improvement, with the index rising to 0.65 in September 2023 from 0.57 in August 2023, led by seasonal pick-up in tractor sales, pre-festive season led buoyancy in two-wheeler sales… also supported by correction in CPI rural inflation,” according to the index. The economic advisory firm introduced the index to track consumption both in urban and rural areas and aims to fill a key data gap to help businesses provide a better picture of the consumption pattern in the country.
Several data points such as passenger car sales, air traffic and other consumer trends had pointed to a pick-up in consumption, which had slowed as inflation surged and interest rates tightened.
Latest data showed retail inflation slowed to a four-month low in October as prices of some food items and fuel moderated, sliding a shade below the 5% mark and providing much-needed relief from stubborn price pressures and triggering hopes of a possible interest rate cut in the next year.
The report said that with Diwali being late this year, the festive season thrust to demand is likely to remain intact in October 2023 as well.
#Urban #Consumption #Urban #consumption #hits #3month #high #September #Report
