The MNI India Consumer Sentiment Indicator rose to 126.2 in June, its highest level since February, as consumers were more confident about future economic growth and incomes under the new Modi-led government. All components of the indicator increased except durable buying conditions. Business conditions expectations for both the short-term and long-term hit record highs, with the government and its policies cited as reasons for optimism. Consumer inflation expectations fell to their lowest since December 2012. The chief economist commented that the rising sentiment is due to the recovery in the Indian economy and optimism around Prime Minister Modi's ability to revive growth.

1. For more information, please contact:
info@mni-indicators.com
+44 (0)20 7862 7444
MNI India Consumer Indicator Rises to 126.2 in
June from 122.1 in May
Long Term Business Expectations Hit Record High
Insight and data for better decisions
The MNI India Consumer Sentiment Indicator rose to
the highest level since February as consumers were
increasingly confident that the government will be
able to improve future economic growth and
household incomes.
The MNI India Consumer Indicator rose 3.3% to
126.2 in June from 122.1 in May, as consumers’
expectations for the future improved markedly. This
was the first survey since the new Modi-led
government was formed in May.
All five components which make up the Consumer
Indicator rose apart from the Durable Buying
Conditions Indicator which remained broadly stable.
Business Conditions in Five Years hit the highest
level since the survey began in 2012 and contributed
the most to the rise in confidence in June.
Consumers were increasingly confident about the
current business climate and felt that business
conditions over the short and long term would also
improve. The majority of those who expected business
conditions to be better in a year’s time cited the
government and its policies as the main reason.
For the first time in six months, consumers were less
dissatisfied with the current level of prices compared
with the previous month and their expectations for
inflation in 12 months’ time fell significantly to the
lowest since December 2012.
100
110
120
130
140
Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14
MNI India Consumer Indicator
Copyright© 2014 MNI Indicators | Deutsche Börse Group.
Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved.
Commenting on the latest survey, Chief Economist
of MNI Indicators Philip Uglow said, “The rise in
sentiment over the past year is a testament to the
gradual recovery in the Indian economy and also to
the optimism that the Indian population has that
Prime Minister Modi will be able to revive growth
and implement reforms to secure India’s long-term
economic future.”
“It’s now down to Modi to show he has the
commitment and ability to push through his policy
agenda, with the government’s first budget in July a
big test.”

2. MNI Indicators - July 1, 2014 2
info@mni-indicators.com | www.mni-indicators.com | @MNIIndicators
All India - Overview
Apr-14 May-14 Jun-14
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
MNI India Consumer Indicator 125.2 122.1 126.2 Feb-14 - 124.5 4.1 3.3%
Current Indicator 114.1 114.6 115.7 Feb-14 - 114.8 1.1 1.0%
Expectations Indicator 132.6 127.2 133.2 Feb-14 - 131.0 6.0 4.8%
Personal Finance: Current 121.8 120.6 122.9 Feb-14 - 121.8 2.3 1.9%
Personal Finance: Expected 130.2 122.5 128.1 Apr-14 - 126.9 5.6 4.6%
Business Condition: 1 Year 126.3 122.3 127.2 Feb-14 - 125.3 4.9 4.0%
Business Condition: 5 Years 141.3 136.8 144.5 series high - 140.9 7.7 5.6%
Durable Buying Conditions 106.4 108.6 108.5 - Apr-14 107.8 -0.1 -0.1%
Current Business Conditions Indicator 106.3 104.7 111.4 Feb-14 - 107.5 6.7 6.4%
Stock Investment Indicator 110.9 120.6 118.4 - Apr-14 116.6 -2.2 -1.8%
Real Estate Investment Indicator 114.4 111.9 110.6 - Oct-13 112.3 -1.3 -1.2%
Car Purchase Indicator 71.7 75.2 78.6 Feb-13 - 75.2 3.4 4.4%
Employment Outlook Indicator 115.7 116.5 122.5 Jun-13 - 118.2 6.0 5.1%
Inflation Expectations Indicator 152.2 146.4 131.5 - Dec-12 143.4 -14.9 -10.2%
Current Prices Satisfaction Indicator 66.3 63.0 69.8 Feb-14 - 66.4 6.8 10.8%
Interest Rates Expectations Indicator 133.6 130.1 135.3 Jan-14 - 133.0 5.2 4.0%