Indians up their spending on dieticians by 125% in financial year 2023-34: Report
Health coaching also saw a notable 45% jump in transactions, showing a clear interest in fitness guidance. Indians have increased their spending on dieticians by... Key Points
The Tribune IndiaConsumer spending underwhelming, UK retailers turn to 'extreme bargains'
Matches' woes are the latest sign that retailers' trouble is spreading across the Atlantic amid weaker consumer spending. Shops have been pushed to the breaking point after inflation has boosted their expenses and weighed on consumer spending, and even heavy discounting isn't enough to save them. Key Points
Economic TimesUS Senate averts imminent shutdown, passes spending bill hours before funding was to expire
The Senate approved a $467.5 billion spending package that will fund agriculture, transportation, housing, energy, and veterans, among others through the end of the fiscal year. Key Points
ThePrintUS Senate averts a potential government shutdown with last-minute funding bill
Senate's green light on a short-term funding bill dodges a potential US government shutdown. Joe Biden likely to sign, warning against economic fallout. Key Points
Hindustan TimesSocial sector spending short of target, deficit to reach ₹15 tn by FY28
According to a report by Dasra in affiliation with Bain & Co., India’s social sector spending stood at roughly at ₹23 trillion ($280 billion) in FY23, which accounts for 8.3% of the GDP. Key Points
mint
Poorest Indians see spending grow at a faster clip
The Household Consumption Expenditure Survey (HCES) 2022-23 reveals that per-capita spending for India's poorest households has grown faster, narrowing the spending inequality gap. Discretionary items now account for a larger share of household spending, indicating a reduction in poverty. Key Points
Economic TimesWhy retirees refuse to spend their own money
Discover why retirees hesitate to spend their own money and explore the reasons behind their reluctance. Learn how to overcome this mindset and make informed spending decisions. Key Points
Times Of IndiaUS GDP grows more than expected at 3.3% in Q4 of 2023
US GDP surpassed expectations, growing by 3.3% in Q4 of 2023, driven by a resilient job market and robust consumer spending, exceeding the 2% economist consensus. Both S&P and Nasdaq futures saw pre-market gains. The year-end marked a strong period for the US economy, with a full-year growth of 2.5%, according to the Commerce Department. Meanwhile, the European Central Bank (ECB) maintained interest rates for the third time, sustaining the historic rate of four percent despite inflation easing. Key Points
Economic TimesAfraid of spending your own money after retirement? Here's how to plan better and enjoy retired life
Thinking about wealth should not evoke feelings of anxiety and fear. Our responsibility for children is mostly over when they have found a profession or job. We can see ourselves as a safety net should something go wrong in their lives. But playing the role of a custodian and seeing our assets as theirs is harmful for both. Key Points
Economic TimesUS government shutdown: Congressional leaders sign $1.66 trillion funding deal
Here’s what the $1.66 trillion deal includes – $886 billion for defence and $772.7 billion for non-defense spending Key Points
Hindustan Times
No delay in funding centrally sponsored schemes: FM
The finance minister said while the government prioritised fiscal prudence it would not compromise on spending for welfare programmes.Lok Sabha approves gross additional spending of Rs1.29 trillion Key Points
mintI love my family, but my favorite Thanksgiving is the one I spent alone
She loves her family, but she spent her favorite Thanksgiving alone watching TV. She says people should be gentle with themselves on their choices. Key Points
InsiderUS consumer spending rises in August; underlying inflation slows
International Business News: U.S. consumer spending rose by 0.4% in August, but underlying inflation slowed to below 4.0%. Gasoline prices surged, leading to a 0.4% increase in th Key Points
Times Of IndiaUS consumer spending in July surges; weekly jobless claims fall
U.S. consumer spending in July increased by 0.8%, exceeding economists' forecast of 0.7%. However, slowing inflation has led to expectations that the Federal Reserve will keep interest rates unchanged next month. The economy grew at a rate of 2.1% in the second quarter, largely due to consumer spending. Despite a cooling labor market, job openings remain low and employers are retaining workers. Key Points
Economic Times3 road construction & contracting focussed companies with ‘buy’ rating can rise up to 33%
The government spending on infrastructure projects, especially on roads has remained at elevated levels for the last nine years, this had a trickle down effect on many parts of the economy and specially companies which are involved in construction and contracting. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . Key Points
Economic Times
Fitch’s US downgrade is stoking the very fight it warned against
Fitch Ratings' decision to downgrade US government debt has been seized upon by rival political factions as a new weapon of combat in their never-ending war, and finger pointing has already commenced. Although President Biden has yet to publicly comment on the ratings cut, aides claim he was initially irritated about the news. The House Freedom Caucus, a group of Republican lawmakers, is demanding lower spending levels during the looming shutdown fight, while Bidens team has blamed Donald Trump for the reduction. Key Points
Economic TimesIndia's Infosys halves FY revenue growth outlook as clients cut spending
Infosys (INFY.NS), India's second-largest IT services firm by revenue, halved its full-year revenue forecast on Thursday and posted a first-quarter profit that missed estimates as clients cut back spending in a cloudy economic environment. Key Points
ReutersBanks say systems are not yet ready for new TCS regime
Indian banks are claiming that they do not yet have the requisite software to implement new rules relating to tax collection at source for foreign debit and credit card transactions, due to start from July 1. Rules issued by the Central Board of Direct Taxes last month require foreign card spending above INR700,000 ($10,874) to be counted towards the Liberalised Remittance Scheme and taxed at 20%. fn Key Points
Economic TimesIT stocks fall over 5%. What triggered this decline?
The Nifty IT index fell by 2.48% as all 10 constituents saw their stock prices drop following US firm EPAM's guidance cut. The firm cut its CY2023E revenue-growth outlook for the second time on the slowdown in discretionary spending by US companies; declines in shares ranged from 1% to more than 5%. EPAM expects a 2% CC revenue decline at the midpoint of the guided band, as total pipeline has fallen. Kotak Institutional Equities expects IT-company Q4 to be weaker than Q1FY24E, with delays in client decision-making and pullbacks in discretionary spending impacting the sector's growth. Key Points
Economic TimesBiden and McCarthy close to deal on US debt ceiling as deadline looms
U.S. President Joe Biden and congressional Republican Kevin McCarthy are nearing a deal to cut spending and raise the debt ceiling, with little time to spare. | World News Key Points
Hindustan Times
Amid global concerns, IT spends among Indian govt bodies, pvt enterprises remain strong
A significant contributor to IT spending in India was government bodies and agencies, which increased tech spending by 11.5% in CY22 to $10.55 billion — with IT services, data centers and software projects being the fastest-growing sub-sectors Key Points
mintWithout growth or welfare, Budget 2023-24 is one that curtails social spending
One expects welfare spending to spike before elections. But this Budget goes against the grain. Key Points
The HinduNumber theory: Four macro trends in India’s health spending
NHA gives data on health spending by the Centre and the state governments. A comparison of these numbers over the last six years is shown here in four charts. | Latest News India Key Points
Hindustan TimesUS inflation trending lower; consumer spending strong in December
US prices rose marginally in December, keeping inflation below 3% for a third straight month. The Federal Reserve is expected to cut interest rates this year, although the timing is uncertain. Consumer spending surged at the end of 2023, leading to expectations of a rate cut. Financial markets have lowered the odds of a March rate cut, indicating the economy's resilience. The central bank is likely to keep its policy rate unchanged next week. Key Points
Economic TimesThe experience turn: A good news and a bad news for Indian retailers
India's consumer landscape is shifting towards discretionary items and durables. A joint study by BCG and RAI reveals a projected $2 trillion retail market in next 10 years, positioning India as a bright spot among global economies with strong GDP growth and robust private consumption. Key Points
Economic Times
Budget 2024: What to watch out for in India’s pre-Lok Sabha election Budget
Interim Budget: Prime Minister Narendra Modi will likely use the last budget of the present government before the elections to woo voters with new spending measures, while avoiding a fiscal deficit increase. The economys rapid expansion has led to a tax windfall for the government, helping it meet its goals of curbing the deficit. Finance Minister Nirmala Sitharaman, who will deliver her sixth budget speech on Feb. 1, has scope to keep infrastructure spending going and take targeted steps to support Modis priority sectors for the elections: farmers, women, the poor, and young people. Key Points
Economic TimesBipartisan deal passes Senate, Resolving debt ceiling crisis and budget cuts
The Senate has approved a bipartisan deal to address the debt ceiling and implement budget cuts, avoiding a potential U.S. default. | World News Key Points
Hindustan TimesUS debt ceiling deal rekindles debate in Congress over Ukraine funds
The battle to raise the US debt ceiling has reignited debate in Congress over funding for Ukraine, with House Speaker Kevin McCarthy stating he has no plans to boost defense spending beyond the $48bn approved in December. President Joe Biden is expected to request more funds by August or September. Key Points
mintNSSO survey shows doubling of household spending in last decade
India Business News: The National Sample Survey Office (NSSO) has released a comprehensive study showing a significant increase in monthly household consumer spending in India from 2011-12 to 2022-23. Find out the details and implications of this survey. Key Points
Times Of IndiaHousehold consumption to revive in FY25, growth at 6.3%: Standard Chartered
India needs household consumption to pick up for GDP growth of 6% or higher in the coming fiscal. Standard Chartered revised its FY25 forecast to 6.3% from 6%, projecting muted inflation and higher food spending to drive growth. The report expects a revival in consumption to offset the impact of lower commodity prices, slower global growth, and moderation in government capex. Key Points
Economic Timesspending vs. Saving: My partner and I don't always agree
When it comes to spending or saving money, my partner and I don't always agree. But we've been together 10 years and make our budget work. Key Points
InsiderUS economy accelerated to a strong 4.9% rate last quarter as consumers shrugged off Fed rate hikes
The Commerce Department said the economy expanded last quarter at the fastest pace in nearly two years — and more than twice the 2.1% annual rate of the previous quarter. Thursdays report on the nations gross domestic product — the economys total output of goods and services — showed that consumers drove the acceleration, ramping up their spending on everything from cars to restaurant meals. Key Points
Economic TimesCredit card usage dips in September
Credit card spending fell 4.2% in September to ₹1.42 trillion, except for IndusInd Bank. Key Points
mintIndia's HCLTech trims full year revenue outlook
India's HCLTech (HCLT.NS) trimmed its full-year outlook for revenue growth on Thursday, signalling near-term weakness in spending as its clients remained cautious due to uncertain demand and a challenging macroeconomic environment. Key Points
ReutersIndia's LTIMindtree misses Q1 profit view as clients cut spending
India's LTIMindtree (LTIM.NS) reported a lower-than-expected first-quarter profit on Monday as some of its clients cut spending due to a challenging macroeconomic environment, while higher employee-related expenses ate into margins. Key Points
ReutersDollar up vs euro but remains on track for weekly loss after inflation data
By Saqib Iqbal Ahmed NEW YORK (Reuters) -The dollar rose against the euro on Friday but was on track for its fifth straight weekly loss against the common currency, after slower U.S. consumer spending Key Points
ThePrintStates' capex focus pivots away from roads to social services
States are expected to reduce their capital expenditure on roads in FY25, focusing more on social services like public health and education. This shift is partly due to the post-pandemic realization of the need to develop human capital. States are also aiming to meet their fiscal targets, with some compromising on road spending to achieve this. While overall spending on roads by states is set to increase, the growth rate is slowing down compared to previous years. The central government is also expected to reduce its spending on roads in FY25. Key Points
Economic TimesRepublicans reject own funding bill, US government shutdown imminent
Hardline Republicans in the U.S. House have rejected a bill to temporarily fund the government, increasing the likelihood of a partial federal shutdown. The bill proposed by House Speaker Kevin McCarthy aimed to fund the government for 30 days and included spending cuts and immigration and border security restrictions. However, it had little chance of passing the Democratic-majority Senate. Key Points
Economic Times18 of the 23 states performed better on capex spend in Q1 of FY24: Bank of Baroda
The majority of Indian states have increased spending on capital expenditure (capex) in Q1 2021 compared to the previous year, according to an analysis by Bank of Baroda economists. The increased spending has led to market borrowing and looks positive for Indias future growth, the note said. Key Points
Economic TimesUS debt ceiling impasse continues, attacks escalate as deadline draws near
Debt ceiling talks between US President Joe Biden's administration and the Republican opposition appeared at an impasse with both sides trading barbs on Saturday over raising the federal $31.4 trillion debt ceiling. Key Points
India Today
Americans ramped up spending during the holidays despite some financial anxiety and higher costs
Holiday sales from the beginning of November through Christmas Eve climbed 3.1%, a slower pace than the 7.6% increase from a year earlier, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards. This year's sales are more in line with what is typical during the holiday season, however, after a surge in spending last year during the same period. Key Points
Economic TimesStates set to trim FY24 spend on roads, bridges
The combined capital expenditure of the 16 large states, which account for 80% of the country's gross domestic product (GDP), on roads and bridges will fall to 0.58% of the gross state domestic product, compared to 0.61% in the previous fiscal, according to their budgets. Key Points
Economic TimesInterim budget firmly conveys govt’s commitment to fiscal consolidation: Moody’s
Moody's Investors Service praises India's interim budget for its commitment to fiscal consolidation goals and fiscal restraint. The budget focuses on reducing spending as a percentage of GDP to drive the reduction in the fiscal deficit. However, Moody's warns that emerging spending needs not included in the budget could restrict the government's ability to meet its deficit target. Key Points
Economic TimesBudget news: Modi govt may lower budget gap by at least 50 bps, up capex by 20% in FY25
India plans to lower its budget deficit by at least 50 basis points in 2024/25 from its target of 5.9% of GDP, while raising capital spending by up to 20%. This move is expected to depend on increased revenues and efforts to curb subsidies. The government is confident of meeting its 5.9% target for the current year ending on March 31. Key Points
Economic TimesParties' Lok Sabha polls spend may top Rs 1 lakh crore, spur growth in Q4
Political parties' spending for the Indian general election could exceed ₹1 lakh crore, potentially increasing consumption and boosting growth by 0.2-0.3 percentage points in the last quarter of FY24. Candidates are expected to accelerate their spending, increasing travel for campaigns and publicity material. The increase in consumption is expected to be more pronounced for rural households and lower-income groups. Key Points
Economic Times
Tailwinds to continue: 6 capital goods and engineering stocks with upside potential of up to 40%
Capital goods and engineering companies had faced tough times for many years. Given the fact that hardly any capacity buildup was taking place in any industry, a number had to change their product portfolio and had to live with very low margins. But all the efforts have now started to show some results. Three things impact the demand for capital goods . First, spending by the government, spending by the private sector. Last but not the least the focus of the government policies. After the state election results, there is a higher probability that two out of three factors are likely to continue to play. Will this lead to another round of strong re-rating? Key Points
Economic TimesGermany's economy shrank, and it's facing a spending crisis that's spreading more gloom
Germany's economy has seen a 0.1% shrink in the July-to-September quarter due to inflation, according to the country's statistics office. The Ifo institute survey of business optimism showed a slight increase to 87.3 in November but remains below its July level. The budget crisis raises the possibility of deep spending cuts next year, as a court ruled that previous spending violated constitutional limits on deficits. Key Points
Economic TimesWeddings blitz opens up a $51 billion opportunity for India
As India's wedding season approaches, millions of ceremonies are expected, offering a $51 billion boost to businesses. Despite economic challenges, increased spending on gold, clothing, and services is anticipated, with a projected 8%-11% growth in associated industries. Despite potential impacts from external factors like the Israel-Hamas war, the festive season is anticipated to contribute significantly to the economy. Key Points
Economic TimesReuters NEXT-BofA CEO expects soft landing for US economy
Bank of America (BAC.N) CEO Brian Moynihan on Wednesday reiterated his expectation of a soft landing for the U.S. economy, saying the lender was seeing a slowdown in consumer spending. Key Points
ReutersZebra Technologies beats quarterly profit expectations, sees soft demand
Barcode scanner maker Zebra Technologies Corp (ZBRA.O) beat third-quarter profit and revenue estimates on Tuesday but forecast a bigger-than-expected drop in the fourth-quarter net sales due to slowing tech spending in a tough economy. Key Points
Reuters
India's record high credit card spending indicates a potential risk
Credit card spending in India reached a historic high of 1.48 trillion rupees ($17.8 billion) in August, raising concerns about potential defaults. This surge in spending comes as indebted households are borrowing more in preparation for the festive season, highlighting a trend of increasing indebtedness and decreasing savings among Indians. Key Points
Economic TimesBeing bullish when bearish narrative is cyclical; 4 ceramic and laminates stocks with upside potential of
The narrative is that monsoon is a bad time for some sectors. Anything linked to construction, whether it is spending on infrastructure projects by the government or private spending on home building, comes down. This brings an element of cyclicality in some industries, right from cement to homebuilding products. However, sometimes, those cycles and narratives are an opportunity which can be utilized for long term investing. Key Points
Economic Times4 home ceramic and laminates stocks with upside scope of up to 34%
The narrative is that monsoon is a bad time for some sectors, anything linked to construction, whether it is spending on infrastructure by the government or private spending on home building. However, sometimes, those cycles and narratives are an opportunity which can be utilized for long term investing. Key Points
Economic TimesShort on system backup, companies can't play CSR long game
The 2013 law states that CSR spending should be a minimum of 2% of average net profit of the three preceding years. When the budget is based on profitability, companies tend to be risk-averse, said Neera Nundy, co-founder of Dasra, a strategic philanthropy foundation. “As a result, agreements with non-profits working on the ground will be year-to-year at times. Sometimes, there are only verbal commitments.” Key Points
Economic TimesDebate over U.S. debt ceiling revives concerns for Ukraine funding
The battle to raise the U.S. debt ceiling is reigniting debates in Congress over funding for Ukraine | World News Key Points
Hindustan Times
Tech demand hits a low as clients tighten purse strings amid economic uncertainties
The dream growth that Indian IT service providers saw earlier in the pandemic because of increased spending by clients is decelerating. The revenue projections of companies for FY24 are at multi-year lows, pulled down by the IT spending cuts implemented by clients amid fears of a recession and the US banking crisis. Key Points
Economic TimesHousehold consumption won't hit inflation much
The latest Household Consumption Expenditure Survey (HCES) is not expected to have a significant impact on consumer price index and inflation calculations. Rural spending on food was down 6.5 percentage points in 2022-23 to 46.4% from 2011-12. Key Points
Economic TimesFrom beverages, packed food to medicines: How India’s spending patterns stack up
Food’s share in total household spending is now less than half in rural areas for the first time, official survey data showed. On average, a rural person spent ₹3,773 per month, compared to ₹6,459 per month in urban areas. Key Points
mintFiscal gap till January shrinks
The central government contained its fiscal deficit in the 2023-24 financial year at 63.6% of the revised target despite a moderation in nominal GDP growth. The deficit dropped 7.3% from a year ago period to ₹11.03 lakh crore. Revenue spending moderated while capital spending remained lower than the revised target. Key Points
Economic TimesBudget 2024: 4 megatrends that make Modi 3.0 blueprint apparent
The response to Finance Minister Nirmala Sitharaman's interim budget has highlighted the absence of populist measures and a commitment to a five-year fiscal consolidation plan. Despite facing challenges such as the pandemic, energy, and food price shocks, the government has maintained fiscal rectitude. The budget signals a shift towards private and corporate spending to support the economy, with a focus on manufacturing, geographical inclusivity, and urban development. The government's strategy for 2025-30 includes fostering a manufacturing surge, developing the eastern region, and addressing the housing needs of the middle class. Key Points
The Economic Times