Is Durable Consumption up or down?

As government numbers claim that Indian consumers are spending more on consumer durables, the industry isn't too pleased. They claim that the first three months of fiscal 2008-09, the period ended June, have been “sluggish” as inflation and interest rates rose.

HT Mint reports that this 'seeming disconnect between the numbers and the logic behind them, on the one side, and the actual performance of the industry, on the other, could mean one of three things: that the data is flawed; that the volume of consumer durables in trade channels has increased significantly without translating into any rise in sales, with manufacturers probably preparing for a coming spike in demand; or that consumer durable makers are facing the same kind of problems other producers are—higher raw material costs, tighter consumer credit—and are equating these with “sluggishness” in the market while, in reality, demand and sales have risen.'

Read the complete story here.


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