India Ratings has unveiled its mid-year outlook for retail in 2013 and they say its negative. The report says, “India Ratings & Research (Ind-Ra) has maintained a negative outlook on the retail sector for H213. Higher inflation and marginal nominal wage growth are expected to act as major deterrents for consumer spending. In addition, margins pressures will continue to impact credit profile of retailers.”
The report suggests, the FY13 private final consumption expenditure (PFCE) growth rate was at an eight year low. The agency does not expect any significant improvement in PFCE for H213. Moreover, with no chances of considerable hike in wages, the inflation rates are going to be high for consumers.
iGrow thinks: “Its funny but we see malls and markets flooded. I was at the Pacific Mall yesterday and I could see shoppers carrying heavy shopping bags and while I exited the mall at 10 pm, people were dropping in to watch movies or have their dinner at some fine dine and casual dine restaurants (obviously no one comes to a mall to shop at 10 pm).” Continue reading Consumer spending dips: India Ratings; iGrow says “really”