TRA Research's Buying Propensity Index (BPI) is a syndicated study, which surveys 3,000 consumer-influencers across eight cities in India conducted every quarter.
The BPI measures the transactional, aspirational and environment sentiments towards making buying decisions and is a direct measure of propensity to buy. The BPI value can range between -1 and 1, ranging from a completely negative sentiment to a fully positive Sentiment.
The BPI for the quarter ending March 2017 stood at 0.42, a fall of 16 per cent over Q3 which was at 0.50.
"December, the month after demonetisation, had witnessed a sharp fall to the lowest BPI at 0.26 in the months since April 2016. Prior to that, there had been a steady climb in BPI from June at 0.37 to November at 0.68," it said.
January 2017 witnessed a noticeable rise to 0.47, the highest in FY17 and there has been a continuous fall of the propensity to buy in subsequent months, with February 2017 showing 0.43 on lesser-than-expected relief in the Union Budget.
The Buying Propensity Index fell further to 0.35 in March, a slip of nearly 20 per cent.
Commenting on the findings, N Chandramouli, CEO, TRA Research (a Comniscient Group Company), said there is a clear indication that the worst of the demonetisation effect is over.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)