LOW CONSUMER SPENDING IN SEPTEMBER

Consumer confidence seems to have dipped lower in the month of September . With worries on inflation, state of the economy, inadequate monsoon and job security, consumers have switched to savings mode rather than spending mode. In September, the CNBC-TV18 Boston Analytics Consumer Confidence Index dropped by 1%. compared to August.
With increased propensity to save by consumers, the savings component of the Index showed a rise. The study revealed that the upcoming festive season does not seem to have propelled spending either which continues to remain extremely weak. Of the respondents interviewed, only 20% were willing to buy consumer durables this year as against 60% last year.
Industry players however maintain that though September was a slow month, things are picking up and trends after the period of Sharads show a 25 - 30% growth. Mr V Ramachandran, Director Marketing maintains that the outlook is positive.
The 1st week of October should give an indication of how the season would shape up.