Hindustan Lever, Dabur and Britannia have all reported a tough quarter because of a sharp decline in rural consumption on low wages and weak food inflation. The fall in volume growth to single digits seems to suggest reduced spending even on staples after the weak demand for housing and cars. Volume growth for Dabur during the period was 4.3 per cent against 12.4 per a year ago. Lower property purchases over 2013-18 sustained consumption for the past few years before possible low income sapped consumption also,” the report said. The report said weak volume growth in FMCGs underlines the slowdown seen in housing over the past 5-6 years and automobiles over the past year.

Source: The Telegraph May 06, 2019 19:18 UTC