In an indication that the recovery from Covid-19 across the sectors of the economy may be delayed further, two data analytics firms – Nielsen and PwC -- in two separate surveys each have given gloomy outlooks in the next six months to one year.
While Neilsen on the FMCG sector predicted a growth of only upto 1% in 2020, The PwC survey of 225 CXOs across industries in India, showed a whopping 82% expected to recover only by June 2021. PxwC in the report titled ‘COVID-19: Path to Recovery’ suggests infrastructure, real estate, industrials, retail, hospitality, media and entertainment have suffered significant revenue decline due to the crisis.
Collapse in demand, supply-chain disruptions and liquidity constraints were the top reasons for the decline, it said.
“Sectors such as information technology, healthcare, pharma, telecom, utilities and consumer essentials were somewhat resilient. Crisis management and agility to adapt to the changing market were the key for resilience,” it said.
According to the report, 73% of respondents are expecting lower revenues in 2020-21, but only 15% expect the decline extending to the next fiscal. The Neilsen report about FMCG said though the industry has shown some sign of improvements in June, in the first half of the calendar year, it witnessed a decline of 6%.
“Keeping these unprecedented dynamics in the market, Nielsen has revised its outlook and is expecting the year to be in the flat growth range (-) 1% to 1% for branded FMCG industry in India,” Nielsen said.