Domestic consumption strengthened in May-23, after moving sideways in Apr-23 as measured by QuantEco Research’s TRUCE indices

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Jul 21, 2023

QuantEco Research || TRUCE Index - Consumption bolsters in May-23

Urban consumption index remained at a record high, clocking a value of 0.71 in May-23 compared to a downwardly revised 0.66 in Apr-23 (previously 0.68). At a granular level, three of the sub-components, namely – Air passenger traffic, Petrol consumption and Passenger vehicle sales all at respective record highs imparted strength to the headline urban consumption index.

Rural consumption index too rose to a record high of 0.61 in May-23 compared to 0.57 in Apr-23 and previous high of 0.59 as of Oct-22. Gains were broad based led by seasonal pick-up in demand for tractors, two wheelers and fertilizer sales. Harvest and subsequent procurement of Rabi output, typically concentrated in the month of May, is likely to have supported rural demand alongside moderation in rural CPI and agri-input oriented WPI inflation.