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Signs of improved consumer confidence  in several key sectors

Ahead of the festive season, there are signs of improved consumer confidence in several key sectors of the economy, including contact services like hospitality while activities in construction and renovation have been on a pick-up for the past few months leading to return of migrant workers for gainful deployment, an ASSOCHAM assessment has noted.

“Our feedback from our member companies, including those in the SMEs, points towards steady pick-up in economic activities with notable gains visible in retail trading, malls, food business and inter-state travel,” the ASSOCHAM assessment note said.

Though on a low base, the Indian economy should close the financial year 2021-22 with double-digit growth, sustaining the catch-up mode. The bounce back as witnessed during the first quarter of the current fiscal should consolidate into a sustainable trend going forward, said a release.

Sharing the positive feedback, the ASSOCHAM Secretary-General, Mr Deepak Sood, said consumer demand is visible and turning into business volumes. “This would be reflected in the second quarter results of corporate India. We should see definite improvement in industries like paints, consumer durables, passenger vehicles and engineering goods.”

The feedback from exporters also showed a positive outlook for the current financial year. Exports to Europe, the US and several Asian destinations would definitely look up. Prospects for exports of metal and other engineering goods, textiles, chemicals and agri products appear bright. “While there is a good demand in the developed nations, the issue of concern relates to increasing cost of cargo movement by ship liners. Hopefully, this should play out as the supply bottlenecks are eased.”


Source: Exim News Service: New Delhi, Sept. 13