Demand picking up on back of robust activities: Assocham

Demand is picking up on the back of robust activities in rural segments and sectors like construction and consumer durables, industry body Assocham said on Friday.

It said domestic travel and tourism are also witnessing an unleashing of pent-up demand.

”Although, hazarding a guess in the middle of a pandemic is not desirable, last 2-3 weeks have been quite encouraging in terms of unlocking of COVID-19 restrictions in most of the states, leading to restoration of trade, pick-up in industrial activities and inventory going down,” it said.

Construction activities that were suspended in April have resumed in several sectors like road building, repairs and maintenance and residential projects.

”Average city dwellers, especially in the upper-middle class and affluent segments have taken up their pending construction and repair or up-gradation of their homes. Work From Home, which is being increasingly adopted across different sectors, has created additional demand for furniture and fixtures at homes, including computer hardware,” it added.

There is an expectation that the demand for farm equipment, machinery and tractors will remain robust and may pick up traction after Monsoon, it said.