New Delhi: Be it borrowing on the credit cards, bank advances against deposits or borrowing from the micro credit markets, all indicate the consumer confidence in the economy touching a new bottom, according to a study by industry chamber Assocham. It said that it will take some big-ticket initiatives by the government to lift the morale of both consumers and the businesses.
“Mirroring the state of consumer confidence, which is a key drive of the economic growth, the study brings out a disturbing trend and a paradox. The lesser spending by consumer is not even contributing to any increase in savings either reflecting pressure on the household budgets resulting in avoidance of discretionary borrowings,” said Assocham.
The credit card outstandings have seen a negligible growth of 1.6 per cent in the current financial year so far while the propensity to borrow for spending against deposits has seen a sharp erosion of four per cent between April 2013 and January 2014.
“A consumer is looking anxiously at the government hoping some uptick in the economy, accompanied by a sharp fall in inflation of essential commodities and a drop in interest rates for purchase of residential properties, bikes and cars,” said an Assocham study.
