India Economy Watch - Rural Consumption Weakens In Q2: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.After double-digit average growth in H1 CY21, rural consumption finally lost steam last quarter, declining 2.4% YoY in Q3 CY21/Q2 FY22. As many as seven of the 11 indicators used to determine the trends in rural consumption contracted in Q2 FY22, with double-digit growth in only one indicator – farm credit. The deterioration in farm terms of trade (with rising input costs and weak output inflation) is the worst in the past quarter of a century. In contrast, urban consumption grew 9.5% YoY in Q2 FY22, partly offsetting the losses seen in H1 FY21. All seven indicators posted better growth in Q2 FY22 vis-a-vis Q2 FY21, largely supported by the base effect. Overall, after growing at an average of 6% in FY20/FY21, rural consumption grew 1.6% YoY in H1 FY22. In comparison, urban consumption grew at a strong 16% YoY following average decline of 1.1% in the previous two years. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Economy Watch - Rural Consumption Weakens In Q2: Motilal Oswal

India Economy Watch - Rural Consumption Weakens In Q2: Motilal Oswal

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