Consumer Spending Shows Positive Trends

Recent quarterly updates from leading companies indicate a noticeable revival in consumer demand across various sectors including packaged goods, beauty, fashion, and jewellery. This uptick comes after a period of sluggish urban consumption, offering a glimmer of hope for the market.

Sector-Specific Growth and Challenges

Dabur highlighted a sequential recovery in the FMCG sector, with particular growth in urban markets. However, unexpected weather conditions impacted their beverage segment, leading to modest overall revenue growth.

Godrej Consumer Products and Marico also reported improving volume growth, despite facing challenges such as high copra prices and geopolitical tensions affecting certain segments.

Looking Ahead

With easing inflation and moderating commodity prices, companies are optimistic about broader gains in the coming quarters. The government's tax incentives are beginning to have a positive effect, especially in discretionary spending areas like fashion and jewellery.