<p class="title">India is in the grip of a consumption slowdown. From home and auto sales to lifestyle products, latest data testifies to the slowdown, but the Centre has denied the slump, stating that a few sectors were booming with demand.</p>.<p class="bodytext">“I don’t think there is a consumption slowdown, Economic Affairs Secretary Subhash Garg told <span class="italic">DH</span>. “Many a time, we tend to misread the numbers. There are some sectors which may be facing a slowdown but that is temporary. Some others are witnessing good demand. For example, food consumption, telephone, data consumption.”</p>.<p class="bodytext">His assertion came even as Maruti Suzuki cut vehicle production for the fifth month in a row in June. The company’s shares have fallen 10% in the past three days.</p>.<p class="bodytext">Maruti is not alone. The lead indicators of rural consumption—tractor and two-wheeler sales—have also seen a perceptible decline in the past few quarters.</p>.<p class="bodytext">Shares of Titan saw its steepest fall in six years on Tuesday, down close to 13%. Titan is facing a tough macro-economic environment, with consumption being hit in April-June quarter with rising gold prices.</p>.<p class="bodytext">In an exchange filing, Titan said “very high gold prices, particularly in June, impacted growth in jewellery industry”.</p>.<p class="bodytext">“Against this background, the company’s growth, particularly in jewellery segment, was lower than planned, though gains in market shares were sustained,” said Titan.</p>.<p class="bodytext">Housing absorption in the country’s top seven cities, including Bengaluru, was down close to 13% in the April-June quarter compared to the January-March quarter. For the first time since 2016, total unit launches are more than units sold in the quarter. The unsold inventory has been witnessing a status quo at 6.65 lakh units.</p>
<p class="title">India is in the grip of a consumption slowdown. From home and auto sales to lifestyle products, latest data testifies to the slowdown, but the Centre has denied the slump, stating that a few sectors were booming with demand.</p>.<p class="bodytext">“I don’t think there is a consumption slowdown, Economic Affairs Secretary Subhash Garg told <span class="italic">DH</span>. “Many a time, we tend to misread the numbers. There are some sectors which may be facing a slowdown but that is temporary. Some others are witnessing good demand. For example, food consumption, telephone, data consumption.”</p>.<p class="bodytext">His assertion came even as Maruti Suzuki cut vehicle production for the fifth month in a row in June. The company’s shares have fallen 10% in the past three days.</p>.<p class="bodytext">Maruti is not alone. The lead indicators of rural consumption—tractor and two-wheeler sales—have also seen a perceptible decline in the past few quarters.</p>.<p class="bodytext">Shares of Titan saw its steepest fall in six years on Tuesday, down close to 13%. Titan is facing a tough macro-economic environment, with consumption being hit in April-June quarter with rising gold prices.</p>.<p class="bodytext">In an exchange filing, Titan said “very high gold prices, particularly in June, impacted growth in jewellery industry”.</p>.<p class="bodytext">“Against this background, the company’s growth, particularly in jewellery segment, was lower than planned, though gains in market shares were sustained,” said Titan.</p>.<p class="bodytext">Housing absorption in the country’s top seven cities, including Bengaluru, was down close to 13% in the April-June quarter compared to the January-March quarter. For the first time since 2016, total unit launches are more than units sold in the quarter. The unsold inventory has been witnessing a status quo at 6.65 lakh units.</p>
