New Delhi: Urban lags behind again. The villagers once again took control. Yes, we are talking about the sale of Fast Moving Consumer Goods (FMCG). A survey conducted by the Finance Ministry of the Central Government has revealed that the demand in urban areas has decreased in the month of September also. On the other hand, improvement is continuing in rural areas.
Where did the data come from?
The Department of Economic Affairs, working under the Union Finance Ministry, released the results of the Monthly Economic Survey on Monday. According to the report released for the month of September this year, rural demand continues to improve, while urban demand has decreased.
Evidence of slowdown in urban demand
According to this report, rural demand has increased in the last month. But on the contrary, there is evidence of slowdown in urban demand. It has been said in this survey. “Urban FMCG sales growth decelerates from 10.1 per cent in Q1FY2023-24 to 2.8 per cent in Q1FY2024-25.”
Why did the sales of motor vehicles decline?
Citing data from the Federation of Automobile Dealers Associations or FADA, the survey said auto sales declined by 2.3 per cent in the first half of fiscal 2024-25. The main reason for this was lower sales in urban areas in the second quarter of FY 2024-25 compared to the second quarter of FY 2023-24. It is noteworthy that there has also been a decline in house sales and project launches in the second quarter of 2024-25.
Effect of unseasonal rain?
“The above trends can be mainly explained by softening consumer sentiments, limited footfall due to above normal rainfall and people refraining from making new purchases during seasonal periods,” the report said. According to the survey, the ongoing festive season and improving consumer sentiments “may boost urban consumer demand.”