Goldman Sachs Report
Consumption Strengthens Across Urban India
The consumption story of Inida seems to be gaining some great momentum again. According to a new report by Goldman Sachs, that has tracked high frequency data from past few weeks has shown a clear upward trajectory in monthly consumption activity. Even though investment signal remain a little uneven and not on equal frequency.
Urban spending, in particular, picked up speed in July. And do you think that the roads have started looking more crowded? That could be due to rising passenger vehicle sales. Petrol demand is also up, and GST collections rebounded from their earlier dip, registering a 7.5% year-on-year growth.
If you were flying around Independence Day, you weren’t alone—air passenger traffic saw a sharp jump in early August, driven by holiday travel. All this paints a picture of people stepping out and spending more.
The big question now is—can this demand hold strong through the rest of the year, or is it just a festive season tease? Either way, the signals are worth watching.
On the rural front, activity indicators showed a broader improvement. Tractor registrations and agricultural exports posted robust year-on-year gains of around 14 per cent and 13 per cent, respectively. Rural incomes also received a boost, with real agricultural wage growth touching 4.5 per cent in May, the highest in eight years.
Goldman Sachs noted that a strong winter crop harvest, contained food inflation, and increased welfare spending could support rural consumption in the coming months. However, the report cautioned about weather-related pressures, with temperatures rising in several regions and driving a sharper-than-expected spike in vegetable prices in July.
In contrast to the consumption uptrend, investment activity painted a mixed picture. Coal production dropped sharply in July due to monsoon disruptions, while automobile and steel output rose. On a year-on-year basis, steel production remained strong at 11 per cent.
Transportation activity showed uneven trends, with diesel demand rising but port cargo movement staying largely unchanged. Goldman Sachs’ proprietary investment index signaled a mild slowdown, tracking 6.7 per cent growth in the third quarter of CY25 compared with 7.7 per cent in the previous quarter of the same year.
Overall, the findings from Goldman Sachs underline that while household and rural spending have continued to support growth momentum, investment activity remains under pressure from seasonal and sector-specific challenges.
(From ANI)
(Disclaimer: This content is taken from ANI Wire Service and is syndicated for informational purposes only.)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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