Mumbai: Consumer sentiment perked up in June this year, as there was greater optimism towards buying conditions and business environment, with people showing increased willingness to purchase big-ticket items, according to a Deutsche Boerse report.
The MNI India Consumer Sentiment Indicator increased 2.7 per cent on the month to 114.7 in June from 111.7 in May, which was the highest since September 2015.
The increase in Consumer Indicator was led by a rise in both the current and expectations measures, it said.
“There are a number of positives to take away from June survey. The MNI India Consumer Sentiment Indicator hit the highest since September, 2015, and measures including personal finances and business conditions have all improved from the lows seen around the turn of the year. Still, respondents remain concerned about the outlook for employment which could well cap any further gains,” MNI Indicators chief economist Philip Uglow said.
The report noted that confidence in current business environment increased, with the indicator rising above the 100 neutral level for the first time in seven months, which in turn underpinned sentiment towards both short and long-term business conditions.
It observed that consumers were less dissatisfied with prices in June, although dissatisfaction remained at a high level.
Buying conditions for IT products, phones and other appliances improved in June, while the wider measure of durable buying conditions rose to a 21-month high.
“If the increase is sustained, it could result in a turnaround in consumer spending,” the report said.