Consumer confidence showing pick-up signs in Q2, says Assocham

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.

“The 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,” it said.

The note further said that with most of the states allowing entry of fully vaccinated people without RTPCR tests for COVID-19, the tourist activities have picked up in states like Himachal Pradesh, Uttarakhand, Rajasthan and Goa.

Though on a low base, the economy should close the financial year 2021-22 with a double-digit growth, sustaining the catch-up mode, it added.

Deepak Sood, Secretary General, Assocham, 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,” he said.