IMA Insights

Consumption and Travel by Adit Jain

In the discussions that your columnist has had, over the course of the past couple of months, with IMA Forum Members, it was evident that urban consumption has begun to taper. 

As it happens, the trend really became apparent several quarters ago. Still, consumer goods companies are likely to record annual revenue growth between 5% and 8%. But that is largely on account of higher prices rather than larger volumes. Analysts have offered various explanations such as greater inflation, poor wage growth and higher home rentals. 

Whilst these may well be true, the fact is consumption growth is usually in sync with urban employment. That has failed to happen. This podcast explains.