The document is a monthly report by MNI Indicators on consumer sentiment in India for July 2014. Some key points:
- The MNI India Consumer Indicator fell slightly from June as consumers were less optimistic about current conditions and future expectations.
- Five of the six components that make up the indicator declined, with personal finances seeing the largest drop.
- Respondents were less confident about their current and future personal finances despite tax measures in the recent budget.
- Sentiment on real estate fell for the fifth straight month while the car purchase indicator rose after an extension of tax cuts.
India is at the turning point to see spur growth. India remains an attractive investment destination for various reasons: its growing share of global GDP, a significant amount of investment necessary to support such growth, its large population with the favor of young demographic, efficiency, and social-economic reforms.
In Aera, we prepared a note for our clients for tremendous opportunities in India.
Please let us know if you need any more details..thx
India is at the turning point to see spur growth. India remains an attractive investment destination for various reasons: its growing share of global GDP, a significant amount of investment necessary to support such growth, its large population with the favor of young demographic, efficiency, and social-economic reforms.
In Aera, we prepared a note for our clients for tremendous opportunities in India.
Please let us know if you need any more details..thx
India Budget 2012-13 - Analysis by Prabhu SrinivasanPrabhu Srinivasan
Budget 2012-13 has invited more criticisms than appreciations from the various stakeholders of the country. Given the unanticipated difficult situation the global markets are currently in, and the multiple problems that the Indian economy is facing, such as weakening of Rupee against US Dollars, High cost of funds, Inflationary pressures, and High unemployment levels to name a few, the finance ministry has opted for a stringent budget to defy these problems and bring the economy back on a sustainable growth path. I would like to conclude the analysis with my view that the key lies in implementation of the plans. Having observed in the past, that implementation of various initiatives have seen multiple road-blocks stalling them abruptly, we shall try to learn from our past to ensure growth and prosperity of the world’s largest democracy!
OBJECTIVE
Global economic activity has come to a near standstill as Covid-19 related lockdowns are imposed across a widening swathe of affected countries. Financial markets have been facing high volatility due to panic sell-offs resulting in destruction of equity markets. Financial institutions have started encountering liquidity constraints and lags in credit flow, thereby putting debt servicing at risk. The need for strong fiscal measures has become the voice of the banking sector to revive. In this webinar, we shall be focusing on the various spheres of the banking sector which has the hard hit due to the pandemic’s intensity, the RBI’s measures to cope up with the current slack and the way forward for revival of the coveted sector.
London 29 November 2013. MNI India Consumer Indicator Rises to 122.5 in November from 120.2 in October. Inflation Expectations Hit a Record High. The MNI India Consumer Indicator rose for the second consecutive month in November, the highest since June, led by an improvement in personal finances. The November rise was driven by an increase in three out of the five components which make up the India Consumer Indicator.
OBJECTIVE
In these times of economic and financial distress owing to COVID-19 pandemic, we would like to stress upon the central bank's relentless efforts to revive the Indian economy. The sizeable rate cut and few other regulatory policies will ease the functioning of the banking system and make sure there is enough liquidity in the economy to promote growth.
In this webinar, we shall analyse the array of financial weapons brought into play by RBI through its Development and Regulatory Policy, and the impact they would have on the economy when they are put to use.
Despite the government's optimism of achieving a growth of about 7% in the Gross Domestic Product
(GDP) this fiscal, chances are it could be below that, at about 6.5% only. But that is one part. The bigger
issue is managing growth in the next financial year. Says Jagannadham Thunuguntla, equity head at
the New Delhi-based merchant banking company SMC Capitals Ltd, "We are in the last quarter of
this financial year. There is hardly any room left to manoeuvre at this stage. In my opinion, the bigger
challenge would be managing growth in the next fiscal."
The MNI India Consumer Indicator declined in January to the lowest level since October, driven by a fall in consumers’ intentions to purchase a large household item.
London, 4 March 2013 MNI INDIA CONSUMER SENTIMENT EMBARGOED UNTIL 9.45 A.M. NEW DELHI TIME The MNI India Consumer Indicator increased to the highest level since December 2012, driven by a rise in both current and future expectations.
India Budget 2012-13 - Analysis by Prabhu SrinivasanPrabhu Srinivasan
Budget 2012-13 has invited more criticisms than appreciations from the various stakeholders of the country. Given the unanticipated difficult situation the global markets are currently in, and the multiple problems that the Indian economy is facing, such as weakening of Rupee against US Dollars, High cost of funds, Inflationary pressures, and High unemployment levels to name a few, the finance ministry has opted for a stringent budget to defy these problems and bring the economy back on a sustainable growth path. I would like to conclude the analysis with my view that the key lies in implementation of the plans. Having observed in the past, that implementation of various initiatives have seen multiple road-blocks stalling them abruptly, we shall try to learn from our past to ensure growth and prosperity of the world’s largest democracy!
OBJECTIVE
Global economic activity has come to a near standstill as Covid-19 related lockdowns are imposed across a widening swathe of affected countries. Financial markets have been facing high volatility due to panic sell-offs resulting in destruction of equity markets. Financial institutions have started encountering liquidity constraints and lags in credit flow, thereby putting debt servicing at risk. The need for strong fiscal measures has become the voice of the banking sector to revive. In this webinar, we shall be focusing on the various spheres of the banking sector which has the hard hit due to the pandemic’s intensity, the RBI’s measures to cope up with the current slack and the way forward for revival of the coveted sector.
London 29 November 2013. MNI India Consumer Indicator Rises to 122.5 in November from 120.2 in October. Inflation Expectations Hit a Record High. The MNI India Consumer Indicator rose for the second consecutive month in November, the highest since June, led by an improvement in personal finances. The November rise was driven by an increase in three out of the five components which make up the India Consumer Indicator.
OBJECTIVE
In these times of economic and financial distress owing to COVID-19 pandemic, we would like to stress upon the central bank's relentless efforts to revive the Indian economy. The sizeable rate cut and few other regulatory policies will ease the functioning of the banking system and make sure there is enough liquidity in the economy to promote growth.
In this webinar, we shall analyse the array of financial weapons brought into play by RBI through its Development and Regulatory Policy, and the impact they would have on the economy when they are put to use.
Despite the government's optimism of achieving a growth of about 7% in the Gross Domestic Product
(GDP) this fiscal, chances are it could be below that, at about 6.5% only. But that is one part. The bigger
issue is managing growth in the next financial year. Says Jagannadham Thunuguntla, equity head at
the New Delhi-based merchant banking company SMC Capitals Ltd, "We are in the last quarter of
this financial year. There is hardly any room left to manoeuvre at this stage. In my opinion, the bigger
challenge would be managing growth in the next fiscal."
The MNI India Consumer Indicator declined in January to the lowest level since October, driven by a fall in consumers’ intentions to purchase a large household item.
London, 4 March 2013 MNI INDIA CONSUMER SENTIMENT EMBARGOED UNTIL 9.45 A.M. NEW DELHI TIME The MNI India Consumer Indicator increased to the highest level since December 2012, driven by a rise in both current and future expectations.
The MNI India Consumer Sentiment provides reliable and up-to-date intelligence on the state of the Indian economy. It provides a monthly snapshot of market activities as perceived by local consumers.
The MNI India Consumer Sentiment serves as the basis for its own dedicated report, the MNI India Consumer Report. This monthly report delivers in-depth analysis of consumers‘ attitudes, perspectives and confidence across the country.
Written by our in-house team of economists, the MNI India Consumer Report blends the analysis of consumer confidence with relevant commentaries. It allows users to develop a thorough understanding of the Indian market and get direct access to consumers‘ views on the economy and its future.
Modi Effect on the Indian Economy - AJSH & Co. Chartered Accountants (New Del...TIAG_Alliance
Contact: AJSH & Co. Chartered Accountants (New Delhi, India)
The Modi government took charge at the Centre with a promise to bring about many changes in terms of governance. This created a wave of excitement among the people.
The Narendra Modi government has put together an elaborate economic reforms package in sync with the party’s election manifesto.
A "king among kings" is how Anil Ambani, one of India's leading industrialists, described Narendra Modi in January last year, long before the latter entered the race to become the country's next prime minister. After winning the Indian election comprehensively, the business community here is waiting with its arms wide open to embrace Mr Modi. They hope he will be their saviour at a time when the economic growth rate is flagging, investments are dwindling and consumer demand is dropping.
I ASEAN Busines Optimism Index Q4 2015 har vi har samlet det kvartalsvise indeks for seks markeder i Sydøstasien, som tilsammen stå for mere end 95% af ASEAN BNP. Der er tale om Indonesien, Malaysia, Filippinerne, Singapore, Thailand og Vietnam.
Deloitte India: What the union budget 2021 brings?aakash malhotra
The Union Budget of 2021 was presented on 1 February 2021 by the Finance Minister, Smt. Nirmala Sitharaman. Deloitte India analyses how the presented budget turned out against expectations. Experts bring forth Deloitte’s View regarding the key highlights of the budget. The presentation also studies the impact of the budget on tax and various industries including, the banking sector, insurance, and healthcare sector. Download here and learn more.
Long on aspirations and short on action - A monograph on the Union Budget 201...D Murali ☆
Long on aspirations and short on action - A monograph on the Union Budget 2015-16 - B. Yerram Raju - Article published in Business Advisor, Budget 2015 special issue http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The Chicago Business Barometer made a positive start to the third quarter, jumping above 50 after two
months in contraction, leaving economic activity expanding at the fastest pace since January.
The Chicago Business Barometer fell 5.4 points to 60.8 in November from a one year high of 66.2 in October driven by a double digit drop in New Orders.
Embargoed until 9:45 a.m. ET, 30 September 2014 The Chicago Business Barometer decreased 3.8 points to a still robust 60.5 in September, as Production and New Orders slowed while fims reported a record rise in stocks and a sharp increase in input prices.
Embargoed until 9:45 AM ET, 29 August 2014 The Chicago Business Barometer surged 11.7 points to 64.3 in August, regaining all the lost ground seen in July, and pointing to continued strength in the US economy.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
3. MNI India Consumer Report - July 2014 3
MNI India Consumer Report - July 2014
Contents
4 Editorial
6 Executive Summary
12 Economic Landscape
16 Indicators
17 MNI India Consumer Indicator
24 Personal Finances
27 Current Business Conditions
30 Durable Buying Conditions
31 Employment Outlook
33 Prices Sentiment
36 Interest Rate Expectations Indicator
37 Stock Investment Indicator
41 Real Estate Investment Indicator
44 Car Purchase Indicator
46 Consumer Sentiment - Regions
50 Consumer Sentiment - Income Group
52 What the Panel Said
54 Data Tables
62 Methodology
4. Spitzzeile Titel4
The government’s maiden budget tried to appease
all, offering something for everyone. But it lacked
spice – it was rather like making a dal without the
tarka!
Dal without Tarka
5. MNI India Consumer Report - July 2014 5
The finance minister, Arun Jaitley, in his maiden
budget speech tried to appease all, offering something
for everyone. But his platter lacked spice – it was
rather like making a dal without the tarka.
What the budget did do was clearly signal the pro-
right policies of Prime Minister Narendra Modi and
the Bharatiya Janata Party. But while it had the feel
good factor, it lacked detail and failed to provide a
clear roadmap for tough reforms. We expected to see
more concrete proposals from Modi’s government
which has, after all, secured the strongest mandate in
30 years.
The government expects economic growth, which has
been below 5% for two consecutive years, the worst
performance in a quarter of a century, to bounce back
to 5.4%-5.9% in the current fiscal year and an annual
7-8% in the next three years. To achieve this, it has
pledged to sharply cut government debt, bring down
inflation, heavily invest in infrastructure and create
more jobs. Infrastructure is the key priority with a
clear goal to increase investment in areas such as
roads, railways, power and airports. India, though, is
not like China and we need to see just how well
Modi’s plans hold up against a wave of red tape which
has in the past stymied infrastructure improvement.
Maintaining the comparison with China, India does
not have an excess of money to splurge. The
government’s hands are tied by a sizeable fiscal deficit
and so there is reliance on public-private partnership
projects and a need to attract foreign investment. The
latter will be helped by the relaxation of rules on
foreign ownership with the budget announcing that it
will allow 49% foreign ownership in local defence
ventures and insurance companies. Since 2001,
when the defence sector was first opened, it has
attracted a meagre $4.1 million in foreign investment,
much lower than other industries such as telecoms,
software services etc.
Certain policies have been drafted to encourage
savings and provide relief to the middle class who
have been burdened by persistently high inflation in
the country over the past two years. An increase in
income tax deduction limits helps, and so do the
concessions for automobile and consumer durable
sectors that have already been extended by six
months. Increased investment in agricultural storage
may help deal with food supply issues, the main
contributor to stubborn food inflation.
On other areas the budget drafted plans to introduce
the long overdue goods and services tax by the end of
the year, which is expected to simplify India’s
cumbersome tax system by replacing a series of
existing taxes such as value added tax, excise duty
and service tax to raise revenues. There was, though,
little information on implementing it. It won’t be easy
as it is opposed by many states.
Finally the budget failed to address in detail key areas
such as subsidies which Modi’s government must try
to get to grips with. All in all it was a budget focused
on encouraging investment, personal savings and
fiscal management and has in general avoided the
usual freebies previous finance ministers have given
in to, a rare move in a poverty stricken nation. But
with little detail it failed to stimulate our taste buds.
Shaily Mittal
Economist
MNI Indicators
6. MNI China Consumer Report - June 20146
Consumer sentiment slipped slightly in July from a
Modi inspired rise in June, but it still remains at a
relatively high level.
Executive Summary
7. MNI India Consumer Report - July 2014 7
Consumer sentiment slipped slightly in July from a
Modi inspired rise in June, but it still remains at a
relatively high level.
The MNI India Consumer Indicator fell by 2.1 points
to 124.1 in July from 126.2 in June as consumers
were less optimistic about both current conditions as
well as future expectations.
The government’s maiden budget took place on July
10, which was towards the end of our survey period
and hence the full impact of it won’t be seen until our
August report. The budget focused on encouraging
investment, personal savings and fiscal management.
Even though the government tried to appease
everyone in its maiden budget, it lacked in detail on
several important fronts such as measures to control
inflation and fiscal deficit.
All five components which make up the Consumer
Indicator fell apart from the Durable Buying Conditions
Indicator which rose slightly. Current Personal
Finances led the decline in consumer sentiment,
followed by Expected Personal Finances and Business
Conditions in Five Years.
Respondents were less confident about their finances
in the current month and also about their finances in
the next 12 months in spite of tax saving measures
offered by the government in its budget which would
improve household incomes.
The Current Business Conditions Indicator, which
measures respondents’ views on the state of business
compared with a year earlier, eased to 107.7 in July
from 111.4 in June. Around half of respondents
thought Business Conditions in a Year’s time would
be better, although there was a significant rise in the
proportion of those who were unsure and did not
answer.
Consumers’ dissatisfaction with the current level of
prices eased for the second time in July, while
expectations for inflation rose again after falling to the
lowest for a year and a half in June.
The Interest Rates Expectations Indicator declined 5.1
points on the month to 130.2 in July from 135.3 in
June.
While consumer confidence has been reasonably
stable in recent months, sentiment on the real estate
market fell for the fifth consecutive month.
The Car Purchase Expectations component, which
gauges whether consumers believe it is a good or bad
time to purchase a car over the next 12 months,
increased to a four month high after the announcement
of an extension to tax cuts on automobiles.
After two significant rises in the run up to the elections,
the Stock Investment Indicator declined for the second
straight month to 112.9 in July compared with 118.4
in June due to lower stock market expectations and a
strong view that equity prices were already very high.
MNI India Consumer Indicator - Components
PersonalFinance:
Current
PersonalFinances:
Expected
DurableBuying
Conditions
BusinessConditionsin1
Year
BusinessConditionsin5
Years
8. MNI India Consumer Report - July 20148
All India - Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
MNI India Consumer Indicator 122.1 126.2 124.1 - May-14 124.1 -2.1 -1.6%
Current Indicator 114.6 115.7 114.2 - Apr-14 114.8 -1.5 -1.3%
Expectations Indicator 127.2 133.2 130.8 - May-14 130.4 -2.4 -1.8%
Personal Finance: Current 120.6 122.9 119.1 - Oct-13 120.9 -3.8 -3.1%
Personal Finance: Expected 122.5 128.1 125.2 - May-14 125.3 -2.9 -2.2%
Business Condition: 1 Year 122.3 127.2 125.9 - May-14 125.1 -1.3 -1.0%
Business Condition: 5 Years 136.8 144.5 141.3 - May-14 140.9 -3.2 -2.2%
Durable Buying Conditions 108.6 108.5 109.3 Mar-14 - 108.8 0.8 0.7%
Current Business Conditions Indicator 104.7 111.4 107.7 - May-14 107.9 -3.7 -3.3%
Stock Investment Indicator 120.6 118.4 112.9 - Apr-14 117.3 -5.5 -4.6%
Real Estate Investment Indicator 111.9 110.6 110.3 - Sep-13 110.9 -0.3 -0.3%
Car Purchase Indicator 75.2 78.6 75.6 - May-14 76.5 -3.0 -3.8%
Employment Outlook Indicator 116.5 122.5 119.9 - May-14 119.6 -2.6 -2.2%
Inflation Expectations Indicator 146.4 131.5 137.0 May-14 - 138.3 5.5 4.2%
Current Prices Satisfaction Indicator 63.0 69.8 72.5 Feb-14 - 68.4 2.7 3.9%
Interest Rates Expectations Indicator 130.1 135.3 130.2 - May-14 131.9 -5.1 -3.7%
10. All India - Records
2012-Current
Minimum Maximum Mean Median
MNI India Consumer Indicator 115.9 133.7 123.7 123.9
Current Indicator 109.3 128.3 116.9 115.5
Expectations Indicator 120.3 137.3 128.2 127.2
Personal Finance: Current 114.2 135.4 121.9 121.1
Personal Finance: Expected 118.4 141.5 128.8 128.3
Business Condition: 1 Year 114.1 131.8 122.2 121.2
Business Condition: 5 Years 123.9 144.5 133.7 132.8
Durable Buying Conditions 100.7 121.1 111.9 111.5
Current Business Conditions Indicator 102.9 124.9 113.8 113.1
Stock Investment Indicator 89.7 120.6 105.2 104.5
Investment Return 82.7 139.1 111.9 110.1
Stock Price Sentiment 100.4 128.6 111.7 109.7
Stock Market Expectations 103.8 140.1 118.0 114.6
Real Estate Investment Indicator 109.7 119.9 114.2 114.3
House Price Expectations 133.3 152.6 142.7 142.9
House Buying Sentiment 92.8 121.5 106.1 104.8
House Selling Sentiment 95.5 113.7 106.8 107.3
Car Purchase Indicator 60.1 84.0 73.0 73.8
Car Purchase Expectations 90.3 114.8 103.5 103.2
Price of Gasoline Expectations 142.5 171.0 157.5 157.2
Employment Outlook Indicator 112.0 128.3 119.3 119.2
Inflation Expectations Indicator 126.8 159.2 146.3 149.4
Current Prices Satisfaction Indicator 63.0 115.9 84.0 83.2
Interest Rates Expectations Indicator 116.6 140.4 130.8 131.4
MNI India Consumer Report - July 201410
11. Consumer sentiment
eased slightly in
July.
The MNI India Consumer Indicator fell by 2.1 points
to 124.1 in July from 126.2 in June as consumers
were less optimistic about both current conditions as
well as future expectations.
12. Spitzzeile Titel12
In its first budget, the government vowed to lift
economic growth to 7-8% in the next three years
by promoting manufacturing growth, investment in
infrastructure and reducing the fiscal deficit to as
low as 3% by 2016.
Economic Landscape
13. MNI India Consumer Report - July 2014 13
In its first budget, the government vowed to lift
economic growth to 7-8% in the next three years by
promoting manufacturing growth, investment in
infrastructure and reducing the fiscal deficit to as low
as 3% by 2016. The budget focused on attracting
foreign capital by opening sectors, encouraging
personal savings and creating incentives for
businesses to invest. Disappointingly, the budget fell
short of being strict on overhauling subsidies and
lacked detail in the implementation of the goods and
services tax that is expected to boost revenue and
make it easier to do business.
The latest economic data from India has been
encouraging and showed some signs of revival.
Consumer price inflation eased to the lowest on
record in June, while wholesale price inflation fell to a
four month low. However, with fears that a below
normal monsoon will put upward pressure on food
prices, and that tensions in Iraq and Russia will
negatively impact the fuel import bill, it will be
challenging for the Reserve Bank of India to cut
interest rates. Industrial production expanded for the
second consecutive month in May, of which output of
consumer durables grew for the first time in 18
months, a tentative sign of a revival in consumer
demand.
Economic growth remains subdued
The economy grew by 4.7% in 2013-14, slightly
above the 4.5% growth witnessed a year earlier. This
was the first time in 26 years that growth has been
below 5% for two successive years.
India’s GDP slowed to 4.6% on the year in the three
months to March, down from 4.7% in the previous
quarter. It was, though, marginally above the 4.4%
rate seen in the same period a year ago.
Data on an output basis showed that growth in the
three months to March was boosted by agriculture
which grew 6.3% on the year, compared with 3.7% in
the previous quarter and 1.6% in the same quarter a
year earlier. Manufacturing data was disappointing
and remained in contraction, declining by 1.4%
Economic Growth
GDP y/y %, fiscal year
Source: Central Statistical Organisation, India
compared with a fall of 1.5% in the previous quarter,
and substantially below the growth of 3% in the same
quarter a year earlier. Service sector output, grew by
12.4%, down from 14.1% in the previous quarter but
up from the 11.2% increase seen in the January-
March quarter a year ago.
The government expects the economy to grow by
5.4%-5.9% in the current fiscal year, although a poor
monsoon, relatively weak external environment and
weak investment means growth closer to the lower
end of the forecast range seems more likely.
May industrial output expands
Industrial production accelerated in May by 4.7% on
the year from 3.4% in April, the second consecutive
rise on the month.
Manufacturing, which contributes about 75% to
industrial output, grew by 4.8% on the year, the
highest since October 2012 and up from 2.5% in the
previous month. Sixteen out of the 22 industry groups
within the manufacturing sector expanded in May, led
by a huge 60% rise in ‘Furniture manufacturing’,
followed by 37.1% growth in ‘Tobacco products’ sector
and a 33.7% increase in the output of ‘Electrical
machinery and apparatus’. The industry group ‘Radio,
TV and communication equipment and apparatus’
0%
2%
4%
6%
8%
10%
12%
Q12009
Q42009
Q32010
Q22011
Q12012
Q42012
Q32013
14. MNI India Consumer Report - July 201414
showed the highest negative growth of 40.3%,
followed by a 28.6% decline in ‘Office, accounting
and computing machinery’ and a 7.4% contraction in
‘Motor vehicles, trailers and semi-trailers’.
Mining output grew for the seventh month in a row by
2.7% in May compared with 2.6% in April. Output of
consumer durables, a measure of consumer demand,
grew for the first time in 18 months, rising 3.2% in
May compared with a 7.8% decline in the previous
month. Capital goods output, a proxy for investment,
rose for the second month in a row by 4.5% on the
year, following four months of contraction.
Inflation eases in June
Consumer prices, which the Reserve Bank of India
now targets, rose by the slowest pace since the
creation of the CPI index in January 2011 by 7.31% in
June compared with 8.28% in May. Food price
inflation, which makes up almost half of the basket,
fell to 7.9% from 9.2% in the previous month. There
are, though, concerns that a deficient monsoon could
push food inflation higher. Core CPI inflation, which
excludes food and energy, eased slightly to 7.73%
from 7.74% in the previous month.
Wholesale price inflation, which the RBI used to focus
on, eased to the lowest in four months, to 5.4% in
June from 6% in May. The prospect of weak monsoon
rains, a rise in minimum support prices (floor price
offered by the government to farmers) and turmoil in
Iraq has increased the risk of rising food and fuel
prices. The government plans to bring down inflation
by tackling supply constraints and creating cold
storages and warehouses to prevent food spoilage.
Repo rate unchanged at 8%
The RBI left the key policy rate unchanged at 8% at
its monetary policy meeting on June 3, the first
interest rate decision since the BJP formed a new
government. Governor Raghuram Rajan said further
policy tightening would not be warranted if the
economy continues on a disinflationary path. At the
same time, the RBI took steps to raise the availability
of credit, reducing the mandatory amount of bonds
lenders must keep with the central bank - called the
statutory liquidity ratio - by 50 basis points to 22.5%
of deposits from mid June.
Fighting inflation is expected to remain the central
bank’s priority and it is firmly focused on keeping the
economy on a disinflationary glide path that is
Inflation
Wholesale Price Inflation*
Consumer Price Inflation**
Source: *Office of the Economic Advisor, India, **MOSPI
Industrial Production
Industrial Production y/y % (RHS)
Industrial Production
Source: Central Statistical Organisation, India
-10%
-5%
0%
5%
10%
15%
20%
25%
50
100
150
200
250
2007
2008
2009
2010
2011
2012
2013
2014
0%
2%
4%
6%
8%
10%
12%
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
15. MNI India Consumer Report - July 2014 15
intended to hit 8% inflation by January 2015 and 6%
by January 2016.
Lower fiscal budget deficit
The government budget deficit stood at Rs. 5.08
trillion in 2013-14, or 4.5% of GDP, mainly on account
of curbs on government expenditure. Net tax receipts
totalled Rs. 10.15 trillion, below the target of Rs.
10.29 trillion, while total expenditure was Rs. 15.63
trillion, below the target of Rs. 15.9 trillion in the
interim budget.
Finance Minister, Arun Jaitley announced that he
plans to shrink the budget deficit to 4.1% of GDP this
fiscal year and subsequently to 3.6% and 3% of GDP
in the following two years. However, he did not detail
exactly how the government planned to do this. The
government expects Rs. 9.77 trillion from taxes and
expenditure of Rs. 17.92 trillion in the current fiscal
year. The cap on foreign investment was raised to
49% in the defence and insurance sectors and more
public private partnerships are to be encouraged for
road building. The budget was disappointing in the
sense that the government did not decide to cut food
and fuel subsidies which cost the government $40
billion a year.
Trade deficit widens to 11-month high in June
India’s trade deficit widened to $11.8 billion in June
from $11.2 billion in May, and was also 4.3% above
the $11.3 billion shortfall recorded in June a year
earlier.
Exports increased by double digits for the second
consecutive month by 10.2% on the year to $26.5
billion, although slightly below Mays exports worth
$28 billion. Imports rose for the first time in 13
months, increasing by 8.3% on the year in June
compared with a contraction of 11.4% in the previous
month, but were 2.5% below the $39.2 billion
recorded in May. Oil imports rose almost 11% to
$13.3 billion in June. Gold imports inched up to $3.1
billion from $2.2 billion in May and were also 65% up
on the year reflecting the easing of some gold import
restrictions in May with premier trading houses being
added to the list of the entities allowed to import
gold. To trim the current account deficit last year, the
government increased import duties on gold and
imposed a rule that required a fifth of all bullion
imports to be re-exported. Those measures had
crimped supply and led to a rise in smuggling. The
Finance Minister left the import tax on gold unchanged
at 10% in the annual budget against market
expectation that the tax may be cut to boost supply
ahead of the festival season.
Foreign reserves increase
India’s foreign exchange reserves rose by $813.2
million to $317.85 billion in the week to July 18.
According to the RBI’s weekly statistical supplement,
foreign currency assets, the biggest component of the
forex reserves, rose by $829.1 million to $291.05
billion.
India’s foreign exchange reserves have risen
substantially since September, leaving the country
less vulnerable to another run on the currency. The
value of India’s gold reserves remained unchanged at
$20.6 billion in the week ending July 18, following a
decline of $155.5 million in the week ending July 4.
Car sales rise in June
Car sales rose to the highest in 10 months, by 14.8%
in June, following growth of 3.1% in May. Sales in
the three months to June gained 2.3% to 444,242
cars, over the same period a year earlier. Heavy
discounting by car manufacturers has aided volume
growth as companies have gone the extra mile to
attract price sensitive buyers.
The government has given positive impetus to
consumer sentiment by extending tax breaks on
automobiles by six months to the end of December.
The excise tax has been reduced on small cars,
motorcycles, trucks and buses from 12% to 8% and
on SUVs to 24% from 30%. The industry is cautious
about the demand for two-wheelers and small cars,
as the predicted below average monsoons could
result in lower incomes for many of the rural
households who rely on these rains.
16. MNI China Consumer Report - June 201416
Consumer sentiment slipped slightly in July from a
Modi inspired rise in June, but it still remains at a
relatively high level.
Indicators
17. MNI India Consumer Report - July 2014 17
Consumer sentiment slipped slightly in July from a
Modi inspired rise in June, but it still remains at a
relatively high level.
The MNI India Consumer Indicator fell by 2.1 points
to 124.1 in July from 126.2 in June as consumers
were less optimistic about both current conditions as
well as future expectations.
The government’s maiden budget took place on July
10, which was towards the end of our survey period
and hence the full impact of it won’t be seen until our
August report. The budget focused on encouraging
investment, personal savings and fiscal management.
Even though the government tried to appease everyone
in its maiden budget, it lacked in detail on several
important fronts such as measures to control inflation
and fiscal deficit.
Consumer sentiment hit a record low in September
last year when India was hit by the turmoil in emerging
markets. Since then, sentiment has improved and in
July, it was above the series average of 123.7 and
also the 12-month average of 122.8.
The Current Indicator, which measures consumers’
assessment of the current conditions, eased to 114.2
in July from 115.7 in June, the lowest since April. The
forward looking Expectations Indicator, which is made
up of the three components, fell to 130.8 in July from
133.2 in the previous month.
All five components which make up the Consumer
Indicator fell apart from the Durable Buying Conditions
124.1
MNI India Consumer Indicator
Eases in July
MNI India Consumer Indicator
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
MNI India
Consumer Indicator 119.5 127.8 125.8 125.2 122.1 126.2 124.1
Current 114.1 118.4 115.5 114.1 114.6 115.7 114.2
Expectations 123.0 134.2 132.8 132.6 127.2 133.2 130.8
100
110
120
130
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
MNI India Consumer Indicator
100
105
110
115
120
125
130
135
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicators
Current
Expectations
18. MNI India Consumer Report - July 201418
124.1
114.2
130.8
Total Indicator Current Indicator Expectations Indicator
All India
124.8
116.8
130.2
Total Indicator Current Indicator Expectations Indicator
South India
125.5
113.1
133.8
Total Indicator Current Indicator Expectations Indicator
North India
119.6
108.2
127.2
Total Indicator Current Indicator Expectations Indicator
East India
124.8
115.3
131.2
Total Indicator Current Indicator Expectations Indicator
West India
121.9
115.4
126.3
Total Indicator Current Indicator Expectations Indicator
Central India
19. MNI India Consumer Report - July 2014 19
Indicator which rose. Current Personal Finances led
the decline in consumer sentiment, followed by
Expected Personal Finances and Business Conditions
in Five Years.
Regions
The decline in the MNI India Consumer Indicator was
observed in all regions apart from East India, where
sentiment rose to the highest since April. Of all the
regions, respondents from North India were most
cheerful with sentiment above the national average
for the second consecutive month since the start of
the survey in November 2012.
Respondents from East India were more optimistic in
July. With confidence driven up by significantly higher
expectations about future Business Conditions.
Age
Consumer sentiment deteriorated in all age groups,
apart from the oldest where it remained stable.
Consumer confidence of the youngest group, who
were the key support for the BJP in the general
election, eased after hitting a record high in June. The
Consumer Indicator for the 18-34 year age range
declined 3.2% on the month to 125.7 from 129.9 in
June. All five components of the Consumer Indicator
fell, led by a fall in consumers’ expectations about
Personal Finances in the next 12 months. They were
also less optimistic about future business conditions.
The Current Conditions Indicator, which is made up of
Current Personal Finances and the Durable Buying
Conditions Indicator, also fell.
Consumer sentiment among 35-54 year olds declined
slightly to 123.5 in July from 124.8 in June. Much of
the drop was due to Current Personal Finances which
fell to the lowest in 11 months. In contrast, it was the
-0.6
-0.5
-0.2
-0.5
0.1
Personal Finance: Current
Personal Finance: Expected
Business Condition: 1 Year
Business Condition: 5 Year
Durable Buying Conditions
Consumer Indicator: Contribution to Monthly Change
(% pt.)
20. MNI India Consumer Report - July 201420
only age group that was more optimistic about
Business Conditions and were also more inclined to
purchase consumer durables in the next 12 months.
For the oldest age range, 55-64 year olds, sentiment
remained unchanged at 122.9. Consumers perceived
their current conditions to be better while they were
less hopeful about future conditions. Consumers’
optimism for purchasing household goods rose to the
highest since March and Current Personal Finances
also increased to the highest level in 2014.
Income
Confidence deteriorated in both low and high income
households, more so among the latter.
The Consumer Indicator for households with an
average annual income of over INR 432,000 declined
6.6% on the month to 128.5 after hitting a record
high of 137.6 in June. Respondents were less
optimistic about the future than current conditions.
There was a sharp fall in expectations decrease
Business Conditions in One Year and a smaller one in
longer term business expectations.
For households with an average annual income under
INR 432,000, the indicator declined for the third
consecutive month to 119.7 in July from 120.9 in
June, the lowest since September 2013.
Compared with the previous year, confidence was
down by 2.3% among higher income households,
while for lower income households it was close to the
level seen a year ago. On average, though, the level of
confidence remains greater among higher income
households.
124.1
125.7
123.5
122.9
Total Indicator 18-34 35-54 55-64
Consumer Indicator: Age Groups
21. MNI India Consumer Report - July 2014 21
119.7
113.1
124.2
Total Indicator Current Indicator Expectations Indicator
< INR 432,000 per annum
128.5
121.9
132.9
Total Indicator Current Indicator Expectations Indicator
> INR 432,000 per annum
MNI India Consumer Indicator
Income Groups
22. MNI India Consumer Report - July 201422
MNI India Consumer Indicator
Main Cities
The Consumer Indicator declined in six out of the ten
major Indian cities in July. Among them, Kolkata was
the least optimistic city with lower optimism in all five
components that make up the MNI India Consumer
Indicator.
In the capital Delhi, consumer sentiment decreased
for the first time in three months to 127.9 from 134.1
in June. All five components that make up the
Consumer Indicator declined, apart from Durable
Buying Conditions which rose marginally. The largest
downward correction was in respondents’ long-term
business expectations, the indicator for which which
declined by 15.3 points on the month. Respondents
were less optimistic about short-term business
conditions as well. In spite of the weakening in
Personal Finances, more consumers perceived it
would be a good time to buy a durable good in the
coming 12 months.
In Mumbai, India’s most populous city, consumer
sentiment declined to the lowest in four months to
128.0 in July from 131.6 in June. Consumers were
less optimistic about their Personal Finances, both
current and expected. In spite of this, more consumers
thought it would be a good time to purchase household
goods, probably in anticipation of higher discounts by
retailers in the upcoming festival season. Respondents
were most bullish about Business Conditions in Five
Years which remained broadly stable compared with
the previous month while short-term business
expectations eased slightly.
Consumer confidence in Bengaluru, the third largest
city by population in India, decreased to 132.5 in July
from 136.2 in June. There was a sharp reduction in
those who were willing to purchase large household
items, pushing the Durable Buying Conditions
Indicator to the lowest since April. Consumers were
less positive about their Personal Finances while their
expectations for short-term business conditions eased
to the lowest in two months.
100
105
110
115
120
125
130
135
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicator - Mumbai
112.7
138.1
115.3
125.4
139.8
149.2
110.2
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Year
Durable
Buying
Conditions
Consumer Indicator Components - Mumbai
Consumer sentiment was strongest in Pune compared
with other regions, although it eased slightly after
rising to a 17-month high in June. Consumers were
less bullish about their current conditions and future
expectations, both declining almost equally. A decline
in their Personal Finances was the main reason for the
decline in consumer sentiment. Consumers were also
less optimistic about business conditions, both short
and long term.
23. MNI India Consumer Report - July 2014 23
100
105
110
115
120
125
130
135
140
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator - Delhi
80
90
100
110
120
130
140
150
160
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicator - Bengaluru
117.0
135.1
124.1
128.6
142.9
133.9
109.8
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Year
Durable
Buying
Conditions
Consumer Indicator Components - Delhi
122.2
139.3
134.0
143.4
132.1
142.5
110.4
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Year
Durable
Buying
Conditions
Consumer Indicator Components - Bengaluru
24. MNI India Consumer Report - July 201424
Respondents were less confident about their finances
in the current month and also about their finances in
the next 12 months in spite of tax saving measures
offered by the government in its budget which would
improve household incomes.
The Current Personal Finances indicator, which
measures whether a household is better or worse off
than a year ago, decreased to 119.1 in July from
122.9 in June, the lowest since October 2013. Out of
those who reported that their financial conditions
deteriorated, the majority cited worse family expenses
as the main reason.
Consumers have been hit by high inflation for two
years now and this has impacted their personal
savings and their ability to purchase goods. The
easing in consumer price inflation over the past two
months, has provided relief for consumers. In July,
around 77.5% of consumers spent 70-100% of their
monthly household income on daily expenses, the
lowest proportion in three months while almost 40%
of respondents said they were saving between 1-29%
of their monthly household income in July.
About half of respondents were confident that their
financial situation would improve in the next 12
months. In 2014, consumers’ expectations have
eased since February and in July they stood at 125.2
compared with 128.1 in June.
119.1
Personal Finances
Less Optimistic
Personal Finances
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Current 114.2 125.3 119.4 121.8 120.6 122.9 119.1
Expectations 121.9 137.4 133.1 130.2 122.5 128.1 125.2
100
110
120
130
140
150
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Personal Finances
Current
Expectations
7.1%
33.8%
49.6%
9.3%
0.2%
Current Financial Situation Compared with 1 Year
Ago (% of Households)
Much Better
A Little Better
Same
A Little Worse
Don’t know/ No Answer
Much Worse
25. MNI India Consumer Report - July 2014 25
0.9%
2.4%
19.2%
77.5%
Monthly Household Income Used for Daily Expenses
(% of Households)
34.7%
38.9%
18.0%
8.3%
Monthly Household Income Used for Savings
(% of Households)
89.8%
5.1%
4.4%
0.7%
Monthly Household Income Used for Large Loan
Repayment (% of Households)
95.5%
4.2%
0.3%
Monthly Household Income Used for Investments
(% of Households)
How Households Spend their
Money
0% - 29% of Income
30% - 49% of Income
0% of Income
1% - 29% of Income
0% of Income
1% - 29% of Income
0% of Income
1% - 29% of Income
50% - 69% of Income
70% - 100% of Income
30% - 49% of Income
50% - 100% of Income
30% - 49% of Income
50% - 100% of Income
30% -49% of Income
50% - 100% of Income
26. w
Around half of
respondents thought
Business Conditions
in a Year’s time
would be better...
...although there was a significant rise in the
proportion of those who weren’t sure.
27. MNI India Consumer Report - July 2014 27
Over the past few months, consumers have been
increasingly confident about the current business
climate and felt that long term business conditions
would also improve as the pro-business BJP formed a
government. In July, perceptions eased slightly as
respondents reassessed just how quickly the Modi
government will be able to turn the economy around.
However, there was still a strong belief that the Modi
government will eventually be able to improve
business conditions.
The Current Business Conditions Indicator, which
measures respondents’ views on the state of business
compared with a year earlier, eased to 107.7 in July
from 111.4 in June.
Around half of respondents thought Business
Conditions in a Year’s time would be better, although
there was a significant rise in the proportion of those
who weren’t sure and did not answer. The Business
Conditions in One Year component fell to 125.9 in
July from 127.2 in June. Of those who expected
business conditions to be better in a year, almost
50% cited economic development as the main reason.
Longer term business expectations eased even more
after hitting a record high in June. Business Conditions
in Five Years declined 2.2% on the month in July to
141.3 from 144.5 in June, although were still 12.1%
above the level a year ago.
107.7
Business Conditions
Lowest Since May
Business Conditions
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Current 113.1 116.0 102.9 106.3 104.7 111.4 107.7
In 1 Year 121.2 128.2 124.5 126.3 122.3 127.2 125.9
In 5 Years 126.0 136.9 140.8 141.3 136.8 144.5 141.3
60
80
100
120
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Current Business Conditions Indicator
90
100
110
120
130
140
150
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Expected Business Conditions: 1 Year and 5 Years
1 Year
5 Years
28. MNI India Consumer Report - July 201428
Business Conditions in 1 Year
Selected Reasons
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
34.5%
49.8%
11.0%
2.0% 2.1% 0.6%
All India, Reasons for Better
30.3%
51.0%
11.9%
1.4%
4.8%
0.6%
All India, Reasons for Worse
76.9%
70.9%
23.1%
29.1%
Jun-14 Jul-14
All India
Among the major cities surveyed, Ahmadabad, which
is the largest city of Gujarat and an important
economic and industrial centre, was the most
optimistic. In Surat, the second largest city of Gujarat
and an important world diamond hub, long-term
expectations jumped on the month.
Better
Worse
29. MNI India Consumer Report - July 2014 29
Business Conditions in 1 Year
Regions
125.9
130.6
119.8
126.1
127.7
119.2
All India North
India
South
India
East
India
West
India
Central
India
Business Expectations
North India South India East India West India Central India
Reasons for Better (% of Respondents)
64.9%
73.0%
84.3%
69.5%
56.8%
35.1%
27.0%
15.7%
30.5%
43.2%
North India South India East India West India Central India
Business Expectations: Better or Worse?
(% of Respondents)
North India South India East India West India Central India
Reasons for Worse (% of Respondents)
Better
Worse
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
Government/Policy
Econ. Development
Income/Employment
Resource/Environment
Social Stability/ Security
Events
30. MNI India Consumer Report - July 201430
The Durable Buying Conditions Indicator rose slightly
to 109.3 in July from 108.5 in June, making it the
only component of the MNI India Consumer Indicator
to rise on the month. Demand has likely been boosted
by the government’s decision to extend duty relief on
mobile phones and other consumer durables up to
December.
Respondents are asked whether they believe it is a
good or bad time to purchase a large consumer
durable, and a result above 100 means that a higher
percentage of respondents view it as a good time.
Sentiment on buying conditions fell throughout most
of last year, as consumers’ disposable income was
squeezed, owing to the weakening of the economy
and the high rate of inflation. The ground lost in 2013
has still not been regained, with the result in July
down 4.1% from the same period a year earlier.
Compared with the previous month, more consumers
from Surat, Visakhapatnam, Mumbai, Ahmadabad
and Delhi thought it was a better time to buy a large
household item. Out of the ten largest cities surveyed,
respondents from Surat were the most optimistic
about buying a large household item in July.
Durable Buying Conditions
Highest Since March
Durable Buying Conditions
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Durable Buying
Conditions 114.0 111.4 111.6 106.4 108.6 108.5 109.3
109.3
95
100
105
110
115
120
125
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Durable Buying Conditions
0.4%
34.0%
45.5%
13.6%
1.3%
5.1%
Is It a Good or Bad Time to Buy Large Household
Goods? (% of Households)
Excellent Time
Good Time
Neutral
Bad Time
Very Bad Time
Don’t Know/No Answer
31. MNI India Consumer Report - July 2014 31
The Employment Outlook Indicator eased slightly to
119.9 in July from 122.5 in June as an increasing
number of respondents thought that the employment
market would deteriorate over the next 12 months. In
spite of the fall, it was slightly above the series average
of 119.3 and 12-month average of 117.5.
In addition, the proportion of respondents who
thought that the outlook for employment over the next
12 months would be better increased to the highest
level in five months in July as consumers expected
higher economic growth to generate more jobs.
Apart from East India, respondents from all other
regions expected the employment situation to ease
slightly in the next 12 months. Respondents from
South India were the most optimistic, where more
than 70% thought conditions would be better. A
growing proportion of respondents thought that
employment conditions would be better in East India,
pushing the indicator to the highest since August
2013.
Employment Outlook Indicator
Eases Slightly
Employment Outlook
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Employment
Outlook 120.9 121.8 115.7 115.7 116.5 122.5 119.9
100
105
110
115
120
125
130
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Employment Outlook Indicator
1.6%
46.4%
42.3%
9.7%
0.1%
Employment Outlook for the Next 12 Months
(% of Households)
119.9
Much Better
A Little Better
Same
A Little Worse
Much Worse
Don’t Know/No Answer
32. w
Consumers’
dissatisfaction with
the level of prices
eased for the second
consecutive month...
...while expectations for inflation rose again after
easing to the lowest for a year and a half in June.
33. MNI India Consumer Report - July 2014 33
Consumers’ dissatisfaction with the current level of
prices eased for the second consecutive month, while
expectations for inflation rose again after easing to the
lowest for a year and a half in June.
The Current Prices Satisfaction Indicator rose to 72.5
in July from 69.8 in June. It was well below the
average of 76.0 for the past 12 months and the series
average of 84.0.
A figure below 100 indicates wider dissatisfaction
with the current level of prices. The further below
100, the greater the dissatisfaction. The indicator has
trended down since the start of the survey in November
2012 and has been above 100 in only the first two
months of the survey. Even though satisfaction has
ticked up for two months, it was still almost 23%
below the level recorded a year earlier.
Official data showed that consumer prices rose by the
slowest pace since the creation of the CPI index in
January 2011, rising by 7.31% in June compared with
8.28% in May. Food price inflation, which makes up
almost half of the basket, eased to 7.9% from 9.2% in
the previous month. There are concerns that a poor
monsoon could push food inflation higher in the
coming months.
Expectations for inflation in 12 months time rose to
137.0 in July from 131.5 in June, the highest since
May. The Inflation Expectations Indicator closely
matches the trend in consumer price inflation and this
month’s pick-up suggests that inflation expectations
are still high with deficient monsoons posing a major
threat.
Prices Sentiment
Satisfaction Increases
Prices Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Satisfaction with
Current Prices 93.9 75.4 67.2 66.3 63.0 69.8 72.5
Inflation Expecta-
tions 144.4 154.8 154.2 152.2 146.4 131.5 137.0
60
70
80
90
100
110
120
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Satisfaction with Current Prices Indicator
110
120
130
140
150
160
170
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Inflation Expectations Indicator
72.5
34. MNI India Consumer Report - July 201434
0.1%
15.4%
29.2%
39.8%
15.4%
Satisfaction with Current Prices
(% of Households)
Very Satisfied
Quite Satisfied
So So
Not Very Satisfied
Not Satisfied At All
Don’t Know/No Answer
22.3%
41.8%
23.4%
12.4%
0.1%
Inflation Expectations in 12 Months
(% of Households)
Much Higher
A Little Higher
Same
A Little Lower
Much Lower
Don’t Know/No Answer
The percentage of respondents who believed prices
would be higher in a year’s time increased to 64.1%
from 54.4%, while those saying prices would be
about the same fell to 23.4% from 33% in the
previous month. A small proportion of respondents
who believed prices would be lower in a year’s time
remained stable.
Of those who thought prices would go up, a growing
proportion thought they would go up by less than 5%,
in contrast to the 11-24% rise expected a month ago.
Regions
Satisfaction with Current Prices rose in all regions
apart from North and Central India. The largest
improvement in the satisfaction level was in East
India, where the sentiment value rose by double digits
to the highest in just over a year. In contrast,
consumers became highly dissatisfied with the current
level of prices in North India, pushing the indicator to
a record low.
Expectations for future prices rose in all regions in
July after easing in the previous month. The largest
rise was in Central India, offsetting much of the
previous month’s decline. Consumers from East India
continued to have the lowest inflationary expectations
compared with other regions.
Prices Sentiment
Regions
35. MNI India Consumer Report - July 2014 35
72.5
53.0
83.3
93.4
72.1
67.3
All India North
India
South
India
East
India
West
India
Central
India
Satisfaction with Current Prices Indicator
137.0
145.8
140.4
125.0
131.4
145.2
All India North
India
South
India
East
India
West
India
Central
India
Inflation Expectations Indicator
All India North
India
South
India
East
India
West
India
Central
India
Satisfaction with Current Prices
(% of Households)
Very Satisfied
Quite Satisfied
Neutral
Not Very Satisfied
Not Satisfied At All
Don’t Know/No Answer
North
India
South
India
East
India
West
India
Central
India
Inflation Expectations in 12 Months
(% of Households)
Much Higher
A Little Higher
Same
A Little Lower
Much Lower
Don’t Know/No Answer
36. MNI India Consumer Report - July 201436
The Interest Rates Expectations Indicator declined 5.1
points on the month to 130.2 in July from 135.3 in
June as the proportion of those who expected lower
interest rates rose.
The government and the central bank remain
committed to controlling inflation along with kick
starting the economy. The RBI left the key policy rate
unchanged at 8% at its monetary policy in June, the
first interest rate decision since the BJP formed a new
government. Governor Raghuram Rajan said further
policy tightening would not be warranted if the
economy continues on a disinflationary path. At the
same time, the RBI took steps to raise the availability
of credit, reducing the mandatory amount of bonds
lenders must keep with the central bank - called the
statutory liquidity ratio - by 50 basis points to 22.5%
of deposits.
The indicator for July was below the average of 135.0
for the past 12 months and slightly below the series
average of 130.8.
Since September 2013, when Raghuram Rajan took
over as the Governor of the RBI, interest rates have
been hiked three times in order to stabilise the sharp
fall of the rupee and control inflation.
Interest Rate Expectations
Lowest Since May
Interest Rate Expectations
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Interest Rate
Expectations 129.6 134.6 133.0 133.6 130.1 135.3 130.2
130.2
100
110
120
130
140
150
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Interest Rate Expectations Indicator
12.9%
41.9%
14.8%
7.0%
0.1%
23.3%
Expected Change in Interest Rate in 1 Year
(% of Households)
Much Higher
A Little Higher
Same
A Little Lower
Much Lower
Don’t know/ No Answer
37. There was a
significant increase
in those who made
a good profit on the
stock market...
... but also those who made a slight loss. More than
50% of the respondents made profits on the month,
although the proportion has been declining.
38. MNI India Consumer Report - July 201438
After two significant rises in the run up to elections,
the Stock Investment Indicator declined for the second
straight month to 112.9 in July compared with 118.4
in June due to consumers’ strong views that equity
prices were already very high.
The indicator gauges whether it is a good or bad time
to invest in the stock market and is made up of three
components.
Expectations about a recovery in the domestic
economy boosted the benchmark Sensex to another
all-time high of above 26,000 in July. Stock Price
Sentiment, which measures whether equity prices are
high or low, rose to 125.6 in July from 117.8 in June.
While above the 100 level, indicating the proportion
of respondents who think prices were high outweighed
those who thought prices were low, the rise on the
month hit the Stock Price Indicator negatively.
The Stock Market Expectations component, which
shows whether consumers think stock prices will rise
or fall in the next three months, declined to 133.2 in
July from 140.1 in June, posting the lowest reading in
four months as expectations fell after hitting a series
high last month.
The Stock Investment Return, a measure of the
amount of profit/loss in investments in the last year,
fell to 131.1 in July from 132.8 in June. In July, there
was a significant increase in those who made a good
profit but also those who made a slight loss. More
than 50% of the respondents made profits, although
the proportion has been declining.
Stock Investment Indicator
Lowest Since April
Investment Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Investment
Sentiment Indicator 105.1 105.1 89.7 110.9 120.6 118.4 112.9
Investment Return 112.7 104.5 82.7 114.6 139.1 132.8 131.1
Stock Price
Sentiment 111.9 103.7 128.6 119.3 112.8 117.8 125.6
Stock Market
Expectation 114.6 114.3 114.9 137.4 135.5 140.1 133.2
70
80
90
100
110
120
130
Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Stock Investment Indicator
-0.49
-2.17
-1.96
Investment Return
Stock Price Sentiment
Stock Market Expectations
Stock Investment Indicator: Contribution to Monthly
Change (% pt.)
112.9
40. w...
Consumers’
sentiment about the
real estate market
fell for the fifth
consecutive month.
The July indicator was below both the average of
113.0 for the past 12 months and the series average
of 114.2.
41. MNI India Consumer Report - July 2014 41
While consumer confidence has been reasonably
stable in the recent months, sentiment on the real
estate market fell for the fifth consecutive month.
The Real Estate Investment Indicator, which is made
up of three components (House Price Expectations,
House Buying Sentiment and House Selling
Sentiment), declined to 110.3 in July from 110.6 in
June, posting the lowest reading in 10 months. The
July indicator was below both the average of 113.0 for
the past 12 months and the series average of 114.2.
The House Price Expectations component, which
measures the outlook for prices over the coming six
months, rose for the second consecutive month, to
144.9 in July from 142.6 in June, the highest level in
three months. Consumers’ expectations about house
prices peaked in February and have since trended
downwards.
Consumers’ sentiment about purchasing a house,
which fell to a five month low in June, rose slightly
close to the neutral 100 level in July. House Buying
Sentiment, a measure of whether it is a good time in
the next six months to buy a home, rose to 99.7 from
99.1 in the previous month, although it was still
considerably below the level recorded a year ago.
Consumers remained divided about what they felt
about purchasing a house in the next six months as
almost equal proportion of respondents felt it was a
good time or a bad time.
Real Estate Investment Indicator
House Selling Sentiment at
Record High
Real Estate Investment Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Real Estate Invest-
ment Sentiment 115.1 119.1 117.8 114.4 111.9 110.6 110.3
Price Expectations 135.1 152.6 148.6 145.9 139.8 142.6 144.9
House Buying 114.7 107.7 102.8 102.1 103.2 99.1 99.7
House Selling 104.4 102.9 98.2 104.9 107.3 110.0 113.7
110.3
100
105
110
115
120
125
Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Real Estate Investment Indicator
0.69
0.18
-1.14
Price Expectations
House Buying Sentiment
House Selling Sentiment
Real Estate Investment Indicator: Contribution to
Monthly Change (% pt.)
42. MNI India Consumer Report - July 201442
110
120
130
140
150
160
Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Real Estate Prices: Expected Changes in Next 6
Months
110.6
99.1
110.0
142.6
110.3
99.7
113.7
144.9
Real Estate
Investment
Indicator
House Buying
Sentiment
House Selling
Sentiment
House Price
Expectations
Real Estate Investment Indicator - Components
Real Estate Investment Indicator
Components and Balances
The government has promised an affordable housing
policy, plus creation of new smart cities and
infrastructure which will help boost the country’s real
estate sector and increase overseas investment.
House Selling Sentiment, a measure of whether it is a
good time in the next six months to sell a house, rose
for the fourth consecutive time to 113.7 in July from
110.0 in June, the highest reading since the start of
the series in February 2013. The measure has a
negative impact on the Real Estate Investment
Indicator.
Regions
The Real Estate Investment Indicator declined in all
regions apart from West India. Even though more
respondents from Southern India were optimistic
about purchasing a house, a more substantial rise in
House Selling Sentiment pulled overall sentiment
down to a series low. In Central India, housing
sentiment fell to the lowest since November 2013 as
respondents were negative about purchasing a house
in the next six months even though they expected
prices to escalate.
June 2014
July 2014
43. MNI India Consumer Report - July 2014 43
80
90
100
110
120
130
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
House Buying Sentiment
90
95
100
105
110
115
120
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
House Selling Sentiment
33.0%
42.3%
13.7%
3.1%
2.8%
5.0%
Reasons for Buying Houses (% of Households)
3.5%
37.0%
32.2%
14.3%
1.1%
11.8%
Timing for Selling Houses (% of Households)
Excellent Time
Good Time
Neutral
Bad Time
Very Bad Time
Don’t Know/No Answer
Prices
Income/Purchasing Power
Investment Value
Policy/Interest Rate
Supply and Quality
Others
44. MNI India Consumer Report - July 201444
In July, optimism about buying a car eased slightly
after rising to a 16-month high, in line with the general
softening of overall confidence. The Car Purchase
Indicator dropped to 75.6 in July from 78.6 in the
previous month, mainly led by higher expectations for
gasoline prices in the next 12 months.
The Car Purchase Indicator is made up of two
components, Car Purchase Expectations and Price of
Gasoline Expectations, the latter having a negative
impact on the indicator. The Car Purchase Expectations
component, which gauges whether consumers believe
it is a good or bad time to purchase a car over the next
12 months, increased to a four month high after the
announcement of an extension to tax cuts on
automobiles in the budget. This helped push the Car
Purchase Expectations up to 105.4 in July from 101.7
in June. Many consumers reported that several
discounts were available on cars.
Since February when the tax cuts were first
announced, our survey has shown that optimistic car
purchasers have outnumbered pessimists. Of those
consumers who felt it was a good time to purchase a
car, there was a significant increase in the number of
respondents who cited policies and interest rates as
the main reason. In its budget, the government
retained excise duty cuts on small cars, scooters/two-
wheelers to 8% from 12% previously for another six
months until December. It also extended the duty cut
from 30% to 24% on SUVs, and medium segment
sedans from 27-24% to 24-20%, respectively.
The majority of consumers gave credit to higher
income and purchasing power for their willingness to
Car Purchase Indicator
Car Buying Expectations
Highest in Four Months
50
60
70
80
90
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Car Purchase Indicator
80
90
100
110
120
130
140
150
160
170
180
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Car Purchase Indicator - Components
Car Purchase Expectations
Price of Gasoline
Car Purchase Sentiment
Jul-13 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Car Purchase
Sentiment 68.5 73.0 75.3 71.7 75.2 78.6 75.6
Car Purchase
Expectations 105.7 103.2 108.9 102.3 101.8 101.7 105.4
Price of Gasoline 168.7 157.2 158.3 158.8 151.4 144.6 154.2
75.6
45. MNI India Consumer Report - July 2014 45
Car Purchase Indicator
Regions
All India North
India
South
India
East
India
West
India
Central
India
Reasons for a Bad Time to Buy a Car
(% of Households)
Prices
Income/Purchasing Power
Policy/Interest Rate
Supply and Quality
Cost of Use/Upkeep
Others
Reasons for a Good Time to Buy a Car
(% of Households)
All India North
India
South
India
East
India
West
India
Central
India
Prices
Income/Purchasing Power
Policy/Interest Rate
Supply and Quality
Cost of Use/Upkeep
Others
1.1%
25.1%
34.7%
14.4%
1.0%
23.7%
Is it a Good Time to Buy a Car?
(% of Households)
Excellent
Good Time
Neutral
Bad Time
Very Bad Time
Don’t Know/No Answer
purchase a car. More car makers are launching
compact cars to attract price sensitive customers and
have also reduced prices of existing models. There
have been reports that Honda Motors is developing a
small car and a compact sports utility vehicle targeted
specially for India where small cars dominate the
market.
Expectations for the Price of Gasoline increased to
154.2 in July from 144.6 in June, the highest reading
in three months. Some consumers reported that it
was better to hire cabs or own CNG vehicles rather
than petrol based ones. About three-quarters of
consumers thought that the price of gasoline would
rise, but those who were unsure or did not answer
also increased substantially. This is probably due to
mixed signals provided by the government who has
promised to lower inflation and to cut down fuel
subsidies in order to make the price of gasoline market
determined.
46. MNI India Consumer Report - July 201446
MNI India Consumer Indicator
Regions
113.1
133.8
117.2
132.1 130.6
138.6
108.9
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: North India
90
100
110
120
130
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicator: North India
116.8
130.2
120.4
126.9
119.8
143.9
113.3
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: South India
110
115
120
125
130
135
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicator: South India
47. MNI India Consumer Report - July 2014 47
108.2
127.2
110.7 111.9
126.1
143.5
105.6
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: East India
100
110
120
130
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicator: East India
115.3
131.2
122.8 124.2 127.7
141.7
107.9
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: West India
90
100
110
120
130
140
150
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
Consumer Indicator: West India
48. MNI India Consumer Report - July 201448
North India South India East India West India Central India
Employment Outlook for the Next 12 Months
(% of Households)
130.2 130.8
128.6
116.5
134.9
139.4
All India North
India
South
India
East
India
West
India
Central
India
Interest Rate Expectations on House and Car Loans
Indicator
Much Better
A Little Better
About the Same
A Little Worse
Much Worse
Don’t Know/No Answer
115.4
126.3
119.2
124.0
119.2
135.6
111.5
Current
Indicator
Expectations
Indicator
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
Consumer Indicator Components: Central India
110
115
120
125
130
135
Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
Consumer Indicator: Central India
49. MNI India Consumer Report - July 2014 49
All India North India South India East India West India Central India
Is it a Good/Bad Time to Buy Large Household Goods? (% of Households)
North
India
South
India
East
India
West
India
Central
India
Interest Rates Expectations
(% of Households)
75.6
74.0
76.3
79.9
74.8 74.5
All India North
India
South
India
East
India
West
India
Central
India
Car Purchase Indicator - Regions
Much Higher
A Little HIgher
About the Same
A Little Lower
Much Lower
Don’t Know/No Answer
Excellent Time
Good Time
Neutral
Bad Time
Very Bad Time
Don’t Know/No Answer
50. MNI India Consumer Report - July 201450
MNI India Consumer Indicator
Income Groups
117.5 116.9 115.0
140.6
108.7
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
< INR 432,000 - Components
120.9
113.3
126.0
119.7
113.1
124.2
Total Indicator Current Indicator Expectations Indicator
< INR 432,000 per annum
127.7 130.8
123.5
144.5
116.1
Personal
Finances:
Current
Personal
Finances:
Expected
Business
Conditions: 1
Year
Business
Conditions: 5
Years
Durable
Buying
Conditions
> INR 432,000 - Components
137.6
123.9
146.8
128.5
121.9
132.9
Total Indicator Current Indicator Expectations Indicator
> INR 432,000 per annum
June 2014
July 2014
June 2014
July 2014
51. Confidence
deteriorated in both
low and high income
households, more so
among the latter.
Compared with the previous year, confidence among
higher income households was down by 2.3% while
for lower income households it was close to the level
seen a year ago.
52. Spitzzeile Titel52
A selection of comments from the panel of
consumers surveyed over the past month.
What the Panel Said
53. “More companies want to open their branches here.”
“Farming is the main source of earning here, but
because of delayed rains business conditions seem to
be bad.”
“Low budget cars are available in the market.”
“Prices of consumer durables are gradually coming
down, so it will be a good time for people to buy such
things.”
“It is better to use CNG rather than petrol vehicles.”
“To make our nation economically stable, the
government should encourage the manufacturing
sector by implementing suitable policies.”
“It is prestigious to have a car these days.”
“Exchange and buyback offers are available on
consumer durable products.”
“Cheaper cars are available.”
“The price of cement is increasing, so house prices
will also increase.”
“Train fares have been increased.”
“It is economical to hire a taxi.”
“The government will do something to encourage
businesses.”
“Due to a delay in monsoons, business conditions will
worsen.”
“The price of electronic products is going down, so it will
be good time for people to buy such things.”
“We hope the new government will do something to
boost business conditions.”
“It is better to invest in land than to buy a house.”
“Only diesel cars are affordable.”
“Discounts are available on car purchase.”
“We shop online because of good discounts and delivery
on time.”
“The metro rail is coming up, so house prices will
increase in near future in this area.”
MNI India Consumer Report - July 2014 53
54. MNI China Consumer Report - June 201454
A closer look at the data from the July consumer
survey.
Data Tables
55. MNI India Consumer Report - July 2014 55
North India Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
NorthI India Consumer Indicator 120.8 128.0 125.5 - May-14 124.8 -2.5 -1.9%
Current Indicator 112.6 115.1 113.1 - May-14 113.6 -2.0 -1.7%
Expectations Indicator 126.2 136.5 133.8 - May-14 132.2 -2.7 -2.0%
Personal Finance: Current 118.7 126.5 117.2 - Apr-14 120.8 -9.3 -7.3%
Personal Finance: Expected 126.5 132.6 132.1 - May-14 130.4 -0.5 -0.4%
Business Condition: 1 Year 126.6 132.6 130.6 - May-14 129.9 -2.0 -1.5%
Business Condition: 5 Years 125.4 144.4 138.6 - May-14 136.1 -5.8 -4.0%
Durable Buying Conditions 106.5 103.7 108.9 Mar-14 - 106.4 5.2 5.1%
Current Business Conditions Indicator 93.0 107.1 99.1 - May-14 99.7 -8.0 -7.5%
Stock Investment Indicator 122.2 108.3 92.0 - Mar-14 107.5 -16.3 -15.1%
Real Estate Investment Indicator 110.0 110.9 110.2 - May-14 110.4 -0.7 -0.6%
Car Purchase Indicator 73.4 74.9 74.0 - May-14 74.1 -0.9 -1.1%
Employment Outlook Indicator 105.6 115.1 110.0 - May-14 110.2 -5.1 -4.4%
Inflation Expectations Indicator 156.1 140.7 145.8 May-14 - 147.5 5.1 3.6%
Current Prices Satisfaction Indicator 54.4 66.3 53.0 - series low 57.9 -13.3 -20.0%
Interest Rates Expectations Indicator 133.6 146.6 130.8 - Feb-14 137.0 -15.8 -10.8%
56. MNI India Consumer Report - July 201456
South India Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
South India Consumer Indicator 124.5 127.3 124.8 - May-14 125.5 -2.5 -1.9%
Current Indicator 119.5 121.3 116.8 - Apr-13 119.2 -4.5 -3.7%
Expectations Indicator 127.9 131.3 130.2 - May-14 129.8 -1.1 -0.8%
Personal Finance: Current 124.6 125.8 120.4 - Apr-13 123.6 -5.4 -4.3%
Personal Finance: Expected 116.9 123.1 126.9 Feb-14 - 122.3 3.8 3.1%
Business Condition: 1 Year 118.9 120.0 119.8 - May-14 119.6 -0.2 -0.1%
Business Condition: 5 Years 147.8 150.9 143.9 - Feb-14 147.5 -7.0 -4.7%
Durable Buying Conditions 114.3 116.9 113.3 - Jan-14 114.8 -3.6 -3.1%
Current Business Conditions Indicator 114.7 119.6 117.7 - May-14 117.3 -1.9 -1.6%
Stock Investment Indicator 117.6 113.0 136.7 series high - 122.4 23.7 21.1%
Real Estate Investment Indicator 111.0 108.1 104.3 - series low 107.8 -3.8 -3.5%
Car Purchase Indicator 82.3 81.6 76.3 - Apr-14 80.1 -5.3 -6.5%
Employment Outlook Indicator 125.3 134.0 131.2 - May-14 130.2 -2.8 -2.1%
Inflation Expectations Indicator 143.4 137.7 140.4 May-14 - 140.5 2.7 1.9%
Current Prices Satisfaction Indicator 71.3 74.8 83.3 Feb-14 - 76.5 8.5 11.2%
Interest Rates Expectations Indicator 128.6 137.6 128.6 - Mar-14 131.6 -9.0 -6.5%
57. MNI India Consumer Report - July 2014 57
East India Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
East India Consumer Indicator 107.6 112.8 119.6 Apr-14 - 113.3 6.8 6.0%
Current Indicator 107.7 105.7 108.2 Apr-14 - 107.2 2.5 2.4%
Expectations Indicator 107.5 117.5 127.2 Apr-14 - 117.4 9.7 8.2%
Personal Finance: Current 108.7 108.3 110.7 Apr-14 - 109.2 2.4 2.2%
Personal Finance: Expected 108.1 117.4 111.9 - May-14 112.5 -5.5 -4.7%
Business Condition: 1 Year 94.2 109.5 126.1 Apr-14 - 109.9 16.6 15.1%
Business Condition: 5 Years 120.2 125.5 143.5 Apr-14 - 129.7 18.0 14.3%
Durable Buying Conditions 106.7 103.1 105.6 May-14 - 105.1 2.5 2.5%
Current Business Conditions Indicator 99.4 100.8 105.4 Apr-14 - 101.9 4.6 4.6%
Stock Investment Indicator - 108.8 116.7 Sep-13 - 75.2 7.9 7.2%
Real Estate Investment Indicator 111.8 106.6 110.5 May-14 - 109.6 3.9 3.6%
Car Purchase Indicator 64.4 76.0 79.9 Mar-14 - 73.4 3.9 5.1%
Employment Outlook Indicator 95.1 115.0 121.9 Aug-13 - 110.7 6.9 5.9%
Inflation Expectations Indicator 122.4 119.2 125.0 Apr-14 - 122.2 5.8 4.9%
Current Prices Satisfaction Indicator 62.4 77.1 93.4 Jun-13 - 77.6 16.3 21.1%
Interest Rates Expectations Indicator 113.5 109.4 116.5 Apr-14 - 113.1 7.1 6.6%
58. MNI India Consumer Report - July 201458
West India Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
West India Consumer Indicator 126.9 129.9 124.8 - Dec-13 127.2 -5.1 -3.9%
Current Indicator 114.8 116.2 115.3 - May-14 115.4 -0.9 -0.8%
Expectations Indicator 134.9 139.0 131.2 - Dec-13 135.0 -7.8 -5.6%
Personal Finance: Current 122.3 123.8 122.8 - May-14 123.0 -1.0 -0.8%
Personal Finance: Expected 130.3 132.4 124.2 - Sep-13 129.0 -8.2 -6.1%
Business Condition: 1 Year 131.7 136.0 127.7 - Dec-13 131.8 -8.3 -6.1%
Business Condition: 5 Years 142.9 148.6 141.7 - Apr-14 144.4 -6.9 -4.7%
Durable Buying Conditions 107.4 108.7 107.9 - May-14 108.0 -0.8 -0.7%
Current Business Conditions Indicator 107.1 114.6 108.4 - May-14 110.0 -6.2 -5.4%
Stock Investment Indicator 121.0 125.8 116.7 - Apr-14 121.2 -9.1 -7.3%
Real Estate Investment Indicator 113.6 112.7 113.9 Apr-14 - 113.4 1.2 1.0%
Car Purchase Indicator 77.0 80.3 74.8 - Apr-14 77.4 -5.5 -6.9%
Employment Outlook Indicator 127.1 122.8 119.2 - Apr-14 123.0 -3.6 -2.9%
Inflation Expectations Indicator 148.4 125.9 131.4 May-14 - 135.2 5.5 4.4%
Current Prices Satisfaction Indicator 63.1 66.3 72.1 Jan-14 - 67.2 5.8 8.7%
Interest Rates Expectations Indicator 132.3 136.0 134.9 - May-14 134.4 -1.1 -0.9%
59. MNI India Consumer Report - July 2014 59
Central India Overview
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Central India Consumer Indicator 124.3 123.9 121.9 - Jan-14 123.4 -2.0 -1.6%
Current Indicator 117.9 115.3 115.4 May-14 - 116.2 0.1 0.1%
Expectations Indicator 128.6 129.7 126.3 - Apr-14 128.2 -3.4 -2.6%
Personal Finance: Current 130.4 123.7 119.2 - Feb-14 124.4 -4.5 -3.6%
Personal Finance: Expected 115.2 128.0 124.0 - May-14 122.4 -4.0 -3.1%
Business Condition: 1 Year 126.8 122.9 119.2 - Apr-14 123.0 -3.7 -3.0%
Business Condition: 5 Years 143.8 138.1 135.6 - Jan-14 139.2 -2.5 -1.9%
Durable Buying Conditions 105.4 106.8 111.5 Apr-14 - 107.9 4.7 4.5%
Current Business Conditions Indicator 112.5 101.7 104.8 May-14 - 106.3 3.1 3.1%
Stock Investment Indicator 116.7 - - - - - - -
Real Estate Investment Indicator 114.3 115.8 113.8 - Nov-13 114.6 -2.0 -1.8%
Car Purchase Indicator 68.8 78.0 74.5 - May-14 73.7 -3.5 -4.4%
Employment Outlook Indicator 116.1 122.9 115.4 - Mar-14 118.1 -7.5 -6.1%
Inflation Expectations Indicator 159.8 127.1 145.2 May-14 - 144.0 18.1 14.2%
Current Prices Satisfaction Indicator 66.1 67.8 67.3 - May-14 67.1 -0.5 -0.7%
Interest Rates Expectations Indicator 146.4 131.4 139.4 May-14 - 139.1 8.0 6.1%
60. MNI India Consumer Report - July 201460
All India - Overview by Age
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Age 18-34
MNI India Consumer Indicator 126.6 129.9 125.7 - Mar-14 127.4 -4.2 -3.2%
Current Indicator 117.5 119.1 115.7 - Mar-14 117.4 -3.4 -2.9%
Expectations Indicator 132.6 137.1 132.3 - Mar-14 134.0 -4.8 -3.5%
Personal Finance: Current 124.7 127.1 122.2 - Mar-14 124.7 -4.9 -3.8%
Personal Finance: Expected 130.7 132.3 126.8 - Nov-13 129.9 -5.5 -4.1%
Business Condition: 1 Year 126.8 129.9 126.7 - Mar-14 127.8 -3.2 -2.5%
Business Condition: 5 Years 140.4 149.0 143.4 - May-14 144.3 -5.6 -3.7%
Durable Buying Conditions 110.2 111.2 109.2 - Mar-14 110.2 -2.0 -1.8%
Age 35-54
MNI India Consumer Indicator 120.5 124.8 123.5 - May-14 122.9 -1.3 -1.0%
Current Indicator 115.1 115.0 113.5 - Apr-14 114.5 -1.5 -1.3%
Expectations Indicator 124.2 131.3 130.2 - May-14 128.6 -1.1 -0.8%
Personal Finance: Current 121.3 121.8 117.8 - Aug-13 120.3 -4.0 -3.3%
Personal Finance: Expected 118.6 126.5 125.5 - May-14 123.5 -1.0 -0.8%
Business Condition: 1 Year 120.3 123.9 125.8 Feb-14 - 123.3 1.9 1.5%
Business Condition: 5 Years 133.7 143.4 139.4 - May-14 138.8 -4.0 -2.8%
Durable Buying Conditions 108.9 108.2 109.1 Mar-14 - 108.7 0.9 0.8%
Age 55-64
MNI India Consumer Indicator 118.2 122.9 122.9 - May-14 121.3 0.0 0.0%
Current Indicator 110.3 111.0 114.7 Dec-13 - 112.0 3.7 3.4%
Expectations Indicator 123.5 130.9 128.3 - May-14 127.6 -2.6 -2.0%
Personal Finance: Current 113.6 117.7 119.1 Dec-13 - 116.8 1.4 1.2%
Personal Finance: Expected 116.7 124.2 121.7 - May-14 120.9 -2.5 -2.0%
Business Condition: 1 Year 116.9 130.0 124.0 - May-14 123.6 -6.0 -4.6%
Business Condition: 5 Years 136.8 138.5 139.1 Mar-14 - 138.1 0.6 0.4%
Durable Buying Conditions 106.9 104.2 110.4 Mar-14 - 107.2 6.2 5.9%
61. MNI India Consumer Report - July 2014 61
All India - Overview by Income
May-14 Jun-14 Jul-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
< INR 432,000 per annum
MNI India Consumer Indicator 123.2 120.9 119.7 - Sep-13 121.3 -1.2 -1.0%
Current Indicator 118.1 113.3 113.1 - Sep-13 114.8 -0.2 -0.2%
Expectations Indicator 126.6 126.0 124.2 - Sep-13 125.6 -1.8 -1.4%
Personal Finance: Current 121.7 118.7 117.5 - Mar-14 119.3 -1.2 -1.0%
Personal Finance: Expected 120.5 113.4 116.9 May-14 - 116.9 3.5 3.1%
Business Condition: 1 Year 115.6 113.8 115.0 May-14 - 114.8 1.2 1.1%
Business Condition: 5 Year 143.6 150.8 140.6 - Feb-14 145.0 -10.2 -6.7%
Durable Buying Conditions 114.6 108.0 108.7 May-14 - 110.4 0.7 0.7%
> INR 432,000 per annum
MNI India Consumer Indicator 130.6 137.6 128.5 - Mar-14 132.2 -9.1 -6.6%
Current Indicator 120.8 123.9 121.9 - May-14 122.2 -2.0 -1.6%
Expectations Indicator 137.2 146.8 132.9 - Mar-14 139.0 -13.9 -9.4%
Personal Finance: Current 132.9 135.5 127.7 - Jan-14 132.0 -7.8 -5.7%
Personal Finance: Expected 134.4 140.2 130.8 - Jan-14 135.1 -9.4 -6.7%
Business Condition: 1 Year 132.2 146.0 123.5 - Mar-14 133.9 -22.5 -15.4%
Business Condition: 5 Year 145.0 154.2 144.5 - Mar-14 147.9 -9.7 -6.3%
Durable Buying Conditions 108.6 112.3 116.1 Dec-13 - 112.3 3.8 3.4%
62. MNI India Consumer Report - July 201462
Methodology
The MNI India Consumer Sentiment Survey is a wide
ranging monthly survey of consumer confidence
across India.
Data is collected via telephone interviews. At least
1,000 interviews are conducted each month across
the country.
The survey adopts a similar methodology to the
University of Michigan survey of U.S. consumer
sentiment.
The main MNI India Consumer Indicator is derived
from five questions, two on current conditions and
three on future expectations:
1) Current personal financial situation compared to a
year ago
2) Current willingness to buy major household items
3) Personal financial situation one year from now
4) Overall business conditions one year from now
5) Overall business conditions for the next 5 years
Indicators relating to specific questions in the report
are diffusion indices with 100 representing a neutral
level, meaning positive and negative answers are
equal. Values above 100 indicate increasing positivity
while values below show increasing negativity.
63. Insight and data for better decisions
Discovering trends in Emerging
Markets
MNI’s Emerging Markets Indicators explore attitudes, perspectives and confidence
in Russia, India and China. Our data and monthly reports present an advance
picture of the economic landscape as perceived by businesses and consumers.
Our indicators allow investors, economists, analysts, and companies to identify
economic trends and make informed investment and business decisions. Our data
moves markets.
www.mni-indicators.com