Consumer sentiment in India regarding personal finances, business and buying conditions increased in May, largely driven by the positive economic data seen in recent months, says a report.
The GICI (Genesis India Consumer Indicator)- a monthly indicator tracking consumer sentiment pan India across personal finances, business conditions and buying conditions - increased slightly to 60.45 in May from 59.04 in April, as per the report.
"The recent pick-up in consumer sentiment tallies with the more positive economic data seen in recent months, notably the latest GDP data which showed growth close to a two-year high," said Chief Economist of GMMR, Philip Uglow.
Genesis Management and Market Research (GMMR) compiles GICI index.
The jump in consumer sentiment comes at a time when the March quarter GDP data showed growth at 7.7 per cent.
According to government data, Indian economy grew 7.7 per cent in January-March 2018, the biggest expansion in seven quarters, on account of robust performance in manufacturing, construction and service sectors as well as good farm output.
The GICI survey further noted that respondents' views on current business conditions increased significantly for the second consecutive month to 38.41 from 33.87. Moreover, consumers were also more upbeat about their current household finances with the indicator increasing to 54.09 in May from 50.66 in April.
There was continued improvement in attitudes towards real estate in April. The Real Estate Indicator, which measures whether people think it is a good time to buy real estate, increased for the fourth consecutive month to 52.44 from 51.7.
"Increased consumer sentiment, higher growth and a pick-up in inflation all suggest the RBI's Monetary Policy Committee will move to a more hawkish footing at the upcoming June meeting," reported.
In its first bi-monthly monetary policy for 2018-19 in April, the RBI had left the repo rate unchanged at 6 per cent. The MPC maintained the status quo for the fourth consecutive time since August last year.
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