0.3 C
London
Wednesday, February 8, 2023

There is a yawning gap between consumer and business confidence

Must read

Biden thanks congressional leaders, Nancy Pelosi in State of the Union address

IE 11 is not supported. For an optimal experience, please visit our site on a different browser.Biden: 'The climate crisis doesn't matter if...

Biden to Address Child Safety Online at State of the Union • londonbusinessblog.com

President Joe Biden will address the nation in the second State of the Union address of his term on Tuesday night. By a...

Global VC firm Partech reaches first slot of largest African fund at €245 million • londonbusinessblog.com

To get a roundup of londonbusinessblog.com's biggest and most important stories delivered to your inbox every day at 3PM PST, register here. How are you,...

Steven Roy- Wiki, age, height, net worth, wife, ethnicity

Stephen Roy is a Canadian filmmaker and actor. Steven directed and appeared in a number of well-known films. He has appeared in...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • India Inc is the most hopeful ever in 20 years in terms of growth prospects and profit margins.
  • Consumers worry about their incomes and are more stressed about inflation than before the pandemic started, says a report from Motilal Oswal.
  • Never before has there been such a big difference between the current assessment of the companies and the consumer sector, the report said.

India’s economic future is sandwiched between corporate optimism – fueled by improving macroeconomic factors – and consumer pessimism worried about incomes and inflation.

According to Motilal Oswal’s report, India Inc is the most hopeful ever in 20 years in terms of growth prospects and profit margins. However, consumers do not come close to these feelings.

“While the consumer spending outlook is bleak, companies appear to be very confident in maintaining a strong order book. Consumers remain significantly less optimistic than the pre-Covid period,” said the Motilal Oswal report based on the industry outlook and central bank consumer confidence surveys for the first half of FY23.

Consumer confidence has nearly halved since the start of the pandemic, as has the industrial outlook. While the latter showed a dramatic recovery, consumer confidence remained low even in the first quarter.

“Never in the past has there been such a big difference between the current assessment of the companies and the consumer sector. Obviously, only one of these two agents will be right in the future,” said Motilal Oswal.

Fast track mode or not?

Some of the confidence in industrial growth could come from business performance showing signs of recovery, according to a Bank of Baroda economic research report on Q1 performance. The report says the positive Q1 performance leads to the conclusion that it is in fast track mode – but a deeper analysis reveals a base effect on these numbers.

“Nevertheless, it may still be reasonable to conclude that the worst is behind us and that several sectors are on the right track, while others continue to face challenges,” the BoB report said.

Consumers, on the other hand, have not seen such signs of their own income and are more stressed about inflation than before the pandemic started. While most companies tend to say their employee sentiment is high, consumers continue to worry about their job prospects.

In July, the urban unemployment rate rose to 8.2% from 7.8% in June, although the overall unemployment rate fell on the back of a pick-up in agricultural activity.

Motilal Oswal hopes the optimism shown by the companies will materialize, but believes consumers can remain cautious as their financial position has deteriorated significantly.

“If so, the expectation of a strong order book may actually reflect a shift in market share from privately held/unorganized/small to publicly traded/organized/large companies, rather than the overall broad improvement in the real economy” the spokesman said. research firm said.

ALSO SEE :

Adani receives SEBI nod for ₹10,100 cr open bid for Ambuja Cements, ACC

RBI clarifies that it is not against privatization of public sector banks

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Biden thanks congressional leaders, Nancy Pelosi in State of the Union address

IE 11 is not supported. For an optimal experience, please visit our site on a different browser.Biden: 'The climate crisis doesn't matter if...

Biden to Address Child Safety Online at State of the Union • londonbusinessblog.com

President Joe Biden will address the nation in the second State of the Union address of his term on Tuesday night. By a...

Global VC firm Partech reaches first slot of largest African fund at €245 million • londonbusinessblog.com

To get a roundup of londonbusinessblog.com's biggest and most important stories delivered to your inbox every day at 3PM PST, register here. How are you,...

Steven Roy- Wiki, age, height, net worth, wife, ethnicity

Stephen Roy is a Canadian filmmaker and actor. Steven directed and appeared in a number of well-known films. He has appeared in...

Aussie fintech Yondr tackles inflation pains and hidden costs

As inflation and interest rates continue to rise, digital banking alternative Yondr is stepping up to help Australians save on hidden costs and budget...