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Urban incomes plummet, demand crumbles: Report
The Business Guardian
|December 04, 2024
Urban demand witnessed a contraction in the second quarter of FY25 because of declining incomes in the corporate and government sectors coupled with an increasing tax burden on households, according to a report by Systematix Institutional Equities.
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The report highlighted that the slowdown in corporate income and reduced government expenditure have significantly impacted urban households. Corporate spending on employee compensation in the non-financial sector decelerated to 6.3 per cent in Q2FY25, down from a peak of 16.4 per cent in June 2022. This marks the sixth consecutive quarter of declining growth in employee compensation, attributed to a slowdown in sales growth, which stood at 3.8 per cent during th
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