NEW DELHI: Consumer sentiment in India moderated in August, as rise in interest rates, appears to have dented optimism in the housing market and also had a negative impact on personal finances, says a report. The GICI (Genesis India Consumer Indicator) – a monthly indicator tracking consumer sentiment pan India across personal finances, business conditions and buying conditions – fell to 61.71 in August from the record high of 62.44 seen in July.
A result above 50 indicates respondents are optimistic while a reading below 50 indicates that pessimists outweigh optimists. “Consumer sentiment remains buoyant despite the small fall seen in August. Buying conditions around consumer durables and especially autos remain very buoyant with few signs of cooling in the short-term,” said Chief Economist of GMMR, Philip Uglow.
Genesis Management and Market Research (GMMR) compiles GICI index. Four out of the five components that comprise the GICI decreased between July and August, with only a bounce-back in the durable buying conditions component, the survey noted. Meanwhile, the survey noted that consumers reported greater optimism about car buying conditions. The automobile purchase indicator rose to 67.36 in August from 63.51 in July and expectations for the next three months leapt to 80.4 from 72.88.
Uglow further noted that the latest rise in interest rates, though, does appear to have dented optimism in the housing market and also had a small negative impact on personal finances. The 25 basis points increase in the repo rate to 6.5 per cent on August 1 seems to have dented optimism in the housing market. The real estate indicator declined to 46.22 in August from 52.32 in July, the lowest since January, indicating fewer respondents thought it was a good time to buy real estate. PTI
