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The global demand for gold fell by 6 per cent to 1,147.5 tonnes during the third quarter of 2023 amid slowing demand for bars and coins and reduced buying from central banks, according to the World Gold Council's (WGC) report released on Tuesday. India, the world's second-largest gold-consuming nation next to China, bucked the trend to clock a double digit growth of 10 per cent in purchases of the yellow metal to 210.2 tonne in Q3 compared to 191.7 tonnes in the same period last year. China posted a marginal rise in gold purchases to 247 tonnes in Q3 this year compared to 242.7 tonnes in the same period last year. Pakistan, which is going through an economic crisis, posted an 11 per cent decline in <keyword id="47316" type="General" weightage="20" keywordseo="gold-demand" source="Orion">gold demand</keyword> to 11.6 tonnes during the quarter from 13 tonnes in the year-ago period. However, neighbouring Sri Lanka's gold demand rose eight-fold to 2.4 tonnes from 0.3 tonnes. According to the WGC report, the world's jewellery demand for gold dropped by 1 per cent to 578.2 tonnes in the third quarter of this year from 582.6 tonnes last year. "The environment of <keyword id="752310" type="General" weightage="20" keywordseo="high-gold-prices" source="Orion">high gold prices</keyword> and economic uncertainty was a key driver of the year-on-year decline, particularly in some of the more price-sensitive markets in Asia and the <keyword id="30350" type="General" weightage="50" keywordseo="middle-east" source="Orion">Middle East</keyword>," the WGC report said. Global bar and coin demand fell 14 per cent to 296.2 tonnes during the third quarter from 344.2 tonnes a year ago, it added. The year-on-year decline in bar and coin investment in the third quarter was due to certain pockets of lower demand, notably in Europe (Germany in particular), the US, Turkey, Australia and Iran, the report added. "Investment demand for gold ETFs, bars and coins was anaemic in Q3. At 157 tonnes, investment was only half of its five-year quarterly average of 315 tonnes," the report said. Gold demand for usage in technology fell three per cent to 75.3 tonnes from 77.3 tonnes because demand in the electronics industry remained relatively weak, although some sectors showed signs of recovery. According to the report, central banks' gold buying also declined 27 per cent to 337.1 tonnes in the third quarter from 458.8 tonnes in the year-ago period. On the other hand, the total gold supply increased 6 per cent to 1,267.1 tonnes during the third quarter from 1,190.6 tonnes last year. Mine production hit a record 971 tonnes in Q3; recycled gold rose year-on-year to 289 tonnes in the said period, according to the report.

Global gold demand plunges, India bucks trend with double digit growth

<ul class="summary-list"><li>Goldman Sachs says <keyword id="66775" type="PERSON" weightage="60" keywordseo="Oil-demand">oil demand</keyword> will see a bounce back with a "V-shaped recovery" but supply will follow an "L shaped recovery, meaning it may not recover fully."</li><li>Goldman Sachs thinks the demand for jet fuel is unlikely to recover from its current lows. </li><li>Goldman's head of global commodities research Jeff Currie, said: "You are going to lose a big chunk of the jet demand that would have been associated with business travel."</li><li>Goldman Sachs predicts 2-3 million barrels a day of demand from air travel will be lost and a full recovery in demand won't take place before the third quarter of 2022. </li><li><a href="https://markets.businessinsider.com/commodities/oil-price?type=wti">Track the price of oil live on Markets Insider</a>.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Goldman Sachs is predicting a V-shaped bounce back in <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti">oil</a> demand but expects the fuel to face a beating from a loss in business travel.At a virtual media briefing attended by Business Insider Friday, the bank's head of global commodities research Jeff Curie said: "We believe oil will exhibit a V-shaped recovery but supply will exhibit an L shaped recovery." "You are going to lose a big chunk of the jet demand that would have been associated with business travel.""Our base case you lose about 2-million barrels per day, you don't have demand normalised until you get to the third-quarter of of 2022 back to pre-crisis levels," he said. <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">Coronavirus</keyword> has brought air travel to a halt and proven to be tumultuous time for aviation industry, effectively erasing all demand for new aircraft, and therefore, the parts required to make them.Famed billionaire investor Warren Buffett recently revealed that his Berkshire Hathaway conglomerate <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-sold-airline-stocks-april-2020-5-1029156875?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">sold its stakes in the "big four" airlines in April</a> for a much lower price than it was purchased and branded the investment a mistake."Currie added that Goldman Sachs is forecasting oil demand next year to hit 99 million barrels per day in 2021 while demand this year will be 94 million barrels per day. <a href="https://www.businessinsider.com/12-stock-picks-buy-8-avoid-investing-in-coronavirus-recovery-2020-5?r=US&amp;IR=TIR=T">Read more: BANK OF AMERICA: Investors should buy these 12 cheap stocks to bet on the coming US recovery — but they should steer clear of these 8 competitors</a>Global oil demand is expected to fall by a record 9.3 million barrels per day year-on-year in 2020, according to the latest oil market report by the International Energy Agency. <h2>Why oil supply will be L-shaped in recovery </h2>Currie said oil supply will have an L-shaped recovery for three main reasons. <ul><li>Shutting in oil wells does damage and it may be difficult to get them back online.</li><li> A sharp decline in capital expenditure. </li><li>Access to capital. A combination of poor returns means people are unlikely to line up capital to work in this space, Currie said. </li></ul>"Now investors do not want to hear anything about oil. They have been beaten up they are done with this space, it is going to take a lot for them to come back," Currie said. <h2>What the US can learn from China's recovery </h2>Goldman's Currie expects the US to recover in a similar way that China has. "So far, we look at the rest of the world, it followed China almost perfectly on the way down and thus far is looking pretty much like China on the recovery.<a href="https://www.businessinsider.com/stock-market-crash-crisis-rally-creates-next-downside-jim-paulsen-2020-5?r=US&amp;IR=TIR=T">Read more: A Wall Street expert lays out how the stock market's 'downright terrifying' surge within this crisis may be laying the groundwork for another 32% crash</a>But Currie said floating storage units will need to be emptied before prices can rise back to about $50 a barrel."Oil demand in china at its peak was down 25%, it is now down about 5%."Oil prices have faced a rollercoaster journey over the last month due to lower demand for fuel during the ongoing pandemic and lack of storage space to accommodate the surplus. The price of <a href="https://markets.businessinsider.com/commodities/news/us-crude-oil-wti-falls-to-21-year-low-1029106364">US oil turned negative for the first time in history three weeks ago. </a>Prices have recovered since but still remain volatile as it remains uncertain whether the front-month contract will also turn negative. The price of oil has continued to slide even after OPEC and its allies agreed to the biggest-ever production cut — one intended to backstop prices. Investors remain unconvinced that the cuts can offset cratering demand for the commodity as the novel coronavirus pandemic keeps society from operating normally.The price of US oil is trading around 2% lower $29.30 per barrel as of 6:33 a.m. ET, meanwhile <a href="https://markets.businessinsider.com/commodities/oil-price?type=brent">Brent</a>, the international benchmark, is also trading 2% lower at $30.24.Read the original article on <a href="https://www.businessinsider.com/goldman-sachs-says-oil-demand-will-bounce-back-2020-05">Business Insider</a>

Goldman Sachs says global oil demand will bounce back but could be hit hard by the lack of business travel

<ul class="summary-list"><li>Demand for <keyword id="11896879" type="UNKNOWN" weightage="60" keywordseo="oil" source="Orion">oil</keyword> in <keyword id="11892748" type="UNKNOWN" weightage="60" keywordseo="china" source="Orion">China</keyword> is on course to drop by 20% in April, Bloomberg reported Friday. </li><li>China is facing its biggest oil-demand shock since the early days of COVID when Wuhan was the epicenter of the outbreak. </li></ul>China's demand for oil is tumbling in April, as the country battles the latest wave of COVID infections by ordering massive lockdowns that are keeping people inside their homes and limiting industrial output,<a href="https://www.bloomberg.com/news/articles/2022-04-22/china-s-oil-demand-is-tumbling-the-most-since-wuhan-lockdown?srnd=markets-vp&amp;sref=GUP2BhaG"> according to a Bloomberg report</a> Friday. Gasoline, diesel and aviation fuel demand is on track to drop by 20% this month, sources with inside knowledge of China's energy industry told Bloomberg. They said the decline is the equivalent to a drop in crude oil consumption of 1.2 million barrels a day. That would result in the biggest oil-demand shock in China since lockdowns began more than two years ago in Wuhan, the initial epicenter of the coronavirus outbreak that eventually turned into a pandemic. China is the world's largest crude importer. Gasoline demand is logging the largest drop. Demand for diesel has slumped from the trucking industry, but there's some support from the agricultural and industrial sectors. <keyword id="13679505" type="UNKNOWN" weightage="60" keywordseo="energy-demand" source="Orion">Energy demand</keyword> is weakening as China tackles its latest wave of COVID infections by ordering millions of people to stay indoors under a zero-tolerance approach. During April, more than half of <a href="https://www.npr.org/2022/04/19/1093620434/45-cities-in-china-are-in-some-sort-of-covid-lockdown-heres-the-toll-thats-takin">China's largest cities were under lockdown</a> measures, according to NPR. Most factories and offices reportedly remained closed in Shanghai, which is China's biggest city and home to 25 million people. City officials on Friday said they would relax some restrictions on truck drivers to lessen pressure on food supplies and trade, <a href="https://apnews.com/article/covid-health-business-economy-shanghai-00d51808c0e637e749b4fcb60cd101a4">the Associated Press reported</a>. Amid the strict lockdowns, Beijing expects the Chinese economy to expand by about 5.5%, the lowest growth target since 1991.Prices for <a href="https://markets.businessinsider.com/commodities/oil-price">Brent crude,</a> the international benchmark, and <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">West Texas Intermediate crude</a> each dipped about 0.8% Friday but remained above $100 a barrel. They have climbed by roughly 35% this year largely on the back of supply concerns stemming from the war against Ukraine by Russia, a major oil producer.

Demand for oil in China is on pace to slide 20% this month, the biggest shock since the early days of COVID

The demand for <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> went up by 14 per cent to 191.7 ton in India during the third quarter of this calendar year, said the <keyword id="113718" type="General" weightage="20" keywordseo="world-gold-council" source="Orion">World Gold Council</keyword> (WGC) on Tuesday. According to the WGC, the gold demand in India was at 191.7 ton (value ₹85,010 crore) during Q3 2022 as against 168 ton (₹71,630 crore) of the corresponding period in 2021. The jewellery demand for the period under review was at 146.2 ton up from 125.1 ton the previous year. On the other hand, the total investment demand for Q3 2022 at 45.4 ton in comparison to 42.9 ton in Q3 2021. The recycled gold showed a downward trend in Q3 2022 with 16 ton as compared to 20.7 ton in Q3 2021. For the nine months of 2022 the gold demand stood at 497.8 ton (jewellery 380.7 ton, investment 117.1 ton) as compared to 453.5 ton (jewellery 345.9 ton investment 107.6 ton "India's total gold demand in Q3 2022 at 191.7 tonnes is a 14 per cent increase over last year. This reflects better-than expected performance and strong consumer interest, helping year-to-date demand return to pre-Covid levels," said Somasundaram P.R., Regional CEO, India, WGC. Credit expansion added impetus to this demand, with bank loan growth touching a nine-year high by quarter-end. He said the recovery in gold jewellery demand was primarily driven by urban India, more specifically Southern parts, underpinned by robust economic activities with a 17 per cent y-o-y increase in tonnage terms. Rural demand however, was impacted by seasonal effect (monsoons) and inflation. On the other hand, Indian bar and coin demand also saw a six per cent y-o-y improvement to 45.4 ton, he added. "Looking ahead, Indian retail investment is likely to continue to benefit from safe-haven demand amid rising interest rates and a weakening rupee. There's optimism in the overall outlook for the rest of the year with weddings and Diwali demand in Q4, but it is unlikely to match last year's record-breaking Q4. Our gold demand estimate for the full year is around 750-800 ton similar to last year," Somasundaram said. At the global level, WGC said the demand for the yellow metal (excluding OTC) in the third quarter of 2022 hit 1,181 ton, up 28 per cent year-on-year. Strong demand pushed the year-to-date total to its pre-Covid levels. Gold demand was bolstered by the consumers and central banks, although there was a notable contraction in investment demand. According to WGC, investment was down 47 per cent year-on-year, as exchange traded fund (ETF) investors responded to a challenging combination of markedly higher interest rates and a strong US dollar with significant outflows of 227 ton. These movements, alongside weakness in OTC demand and negative sentiment in futures markets, hampered gold's price performance -- contributing to an eight per cent quarter-on-quarter drop in the price during Q3 2022. Just as consumer gold demand firmed, central bank buying picked up significantly with estimated record purchases of nearly 400 t in the third quarter, said WGC. "Looking ahead, we anticipate central bank buying and retail investment to remain strong and that could help offset potential declines in OTC and ETF investment that may prevail if the dollar strength persists. We also expect to see jewellery demand continue to perform strongly in some regions such as India and Southeast Asia, while the technology sector will likely witness further decline in the face of economic deceleration," Louise Street, Senior Markets Analyst said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/rbi-to-launch-the-nations-first-digital-rupee-pilot-project-for-the-wholesale-segment-today/articleshow/95221874.cms">RBI to launch the nation's first digital rupee pilot project for the wholesale segment today</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/icertis-raises-150-million-to-boost-contract-lifecycle-management-business/articleshow/95209273.cms">Icertis raises $150 million to boost contract lifecycle management business</a>

Gold demand went up by 14% in Q3: World Gold Council

Demand trajectory across urban and rural markets in India has shown a "slight improvement" sequentially in the March quarter, although it falls short of a full recover, FMCG major Dabur said. Despite near-term consumption pressure, some "green shoots" are emerging such as moderating inflation, improving consumer confidence and increase in government spending. "While urban markets have returned to positive volume growth, rural markets still remain muted," said Dabur in its latest quarter updates. The company expects a "mid-single digit revenue growth" for the January-March quarter in such a scenario. Its F&amp;B business continues to trend at robust levels and will report strong double-digit growth, while healthcare portfolio is expected to be in a positive growth trajectory, it added. Home &amp; Personal Care (HPC) will report low single-digit revenue growth on account of a slowdown in the personal care categories. "Our brands continued to record gain in market shares in most of the segments," it said. March quarter also marks the consolidation of Badshah Masala, a business which it acquired. It is in the process of being integrated and is tracking as per expectations. Over international sales, Dabur said it expects "high single-digit growth" in constant currency. "However, due to currency headwinds in Egypt and Turkey, the reported growth in INR will be impacted. While there are short-term pressures, we are restructuring our distribution network in key markets and increasing investments behind our brands which will benefit us in the long term," it said. "Overall, Dabur's consolidated revenue is expected to report mid-single digit growth during the quarter," it said. During the quarter inflation continued to cool off for most of our commodities. "India gross margins are expected to show an improvement, but Consolidated gross margin will be impacted mainly due to currency headwinds in International Business. We have also strategically increased our spending behind our brands, leading to short-term pressure on the operating margin, which is expected to be lower by around 200-250 bps as compared to Q4 FY22," it said. While the environment has been challenging, the fundamentals of the business continue to be resilient. "We will continue to invest strongly behind Power Brands, Innovation, Distribution expansion and a robust back end which will enable us to increase our market shares and achieve profitable and sustainable growth," it said. This quarter update will be followed by detailed financial results and earnings presentation once the Board of Directors of the Company approves the consolidated and standalone financial results. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/monetary-policy-impact-rbis-pause-to-support-real-estate-demand-particularly-affordable-segment/articleshow/99290486.cms">Monetary Policy Impact: RBI’s pause to support real estate demand - particularly affordable segment</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rbi-revises-indias-fy24-growth-outlook-expects-softer-inflation-on-the-back-of-lower-commodity-prices/articleshow/99290005.cms">RBI revises India’s FY24 growth outlook, expects softer inflation on the back of lower commodity prices</a>

Demand trajectory slightly improves sequentially in March qtr, green shoots emerge, says Dabur

<ul class="summary-list"><li><keyword id="18712" type="ENTERTAINMENT" weightage="60" keywordseo="Gold">Gold</keyword> investments plunged 60% in the first half of 2021, data from the World Gold Council showed.</li><li>Jewellery <keyword id="6358993" type="UNKNOWN" weightage="60" keywordseo="demand">demand</keyword> fared much better, but hasn't yet recovered its pre-pandemic levels.</li><li>Demand from India, a key market for gold, was significantly hurt by the impact of COVID-19.</li></ul>Investor appetite for piling into <a href="https://markets.businessinsider.com/commodities/gold-price">gold</a> through commodity funds seems to have dwindled in 2021 compared to last year, but retail shopping remains hot.Demand for gold as an investment fell to 455.9 tons in the first half of the year, down 60% compared with a year ago, when exchange-traded funds logged record inflows, <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2021/investment">figures released</a> Thursday by the World Gold Council showed. Investment demand for gold covers ETFs as well as coins and bars.Overall, global demand for the precious metal stood at 1,833.1 tons in the first six months of 2021, <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2021">down 10%</a> year-on-year. That slide came as gold futures fell 3% in the first half to stand at about $1,775 per ounce as of June 30.In the second quarter, global demand for gold gained momentum to reach about 955 tons, roughly the same level as the same period last year, according to the report. "It has recovered noticeably as compared with the previous two weak quarters," said Daniel Briesemann, precious and industrial <keyword id="45333" type="ORGANIZATION" weightage="60" keywordseo="Metals">metals</keyword> analyst at Commerzbank.The WGC report highlighted a divergence in appetite for gold between institutional investors buying bars and coins, and consumers purchasing physical gold and personal ornaments. After dropping to its lowest annual level on record in 2020, jewellery demand <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2021/jewellery">soared 60%</a> to about 390 tons in the second quarter. But it still hasn't recovered to pre-pandemic levels, as first-half demand came in at 873 tons, considerably lower than for the period in years before the outbreak of COVID-19, the council said.For the entire year, jewellery demand is expected to total between 1,600 to 1,800 tons, which would be above 2020 levels but well below pre-pandemic levels. The WGC report cited continued disruption in some <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>, such as India, as a hindrance to recovery.Buyers in China and the US contributed the most to jewellery demand in the first half. In the second quarter, India's market was significantly affected by the impact of the coronavirus outbreak, with demand plunging 46%.The WGC had <a href="https://www.gold.org/goldhub/research/gold-outlook-2021-mid-year">previously estimated</a> new COVID-19 variants could limit the uptake in jewellery demand in key markets. <div type="image" title="World Gold Council" height="505" width="860" msid="84856158" hostid="261"></div>Central banks worldwide maintained their gold buying, increasing reserves by about 200 tons in the second quarter. Net purchases in the first half were 333.2 tons, 39% higher than the five-year average.Gold prices have remained steady in recent weeks, around the $1,800 level, but rose to just shy of $1,820 on Thursday after Federal Reserve officials signaled the US economy is getting closer to the point where huge monetary stimulus can be reduced.Read More: <a href="https://www.businessinsider.com/options-strategy-stocks-q2-earnings-calls-straddles-semiconductors-gs-2021-7" target="_blank" rel="noopener noreferrer">Goldman Sachs lays out its top 3 options plays for the next week to beat volatility that's at multi-year lows this Q2 earnings season</a>

Gold investment demand tumbled 60% in the first half this year, but people still kept buying jewellery

<keyword id="44883" type="General" weightage="20" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> India is looking to bring in more flexibility in its production processes in order to produce <keyword id="36810" type="General" weightage="20" keywordseo="vehicles" source="Orion">vehicles</keyword> as per the evolving market scenario, according to a senior company official. The country's largest carmaker is looking to strengthen the production of high selling utility vehicles while curtailing the roll out of the entry level cars. "Diverging <keyword id="6358993" type="General" weightage="20" keywordseo="demand" source="Orion">demand</keyword> patterns between utility vehicles and the small car segment is continuing. The company is working on increasing the flexibility in operations to produce vehicles as per the evolving market demand," Maruti Suzuki India Executive Officer Corporate Affairs Rahul Bharti said in an analyst call. He noted that the automaker has discovered that one of the reasons for the recent dip in the margins is because it was producing "some slow-moving cars". "And we did not have sufficient production <keyword id="6390515" type="General" weightage="20" keywordseo="capacity" source="Orion">capacity</keyword> for the cars that had demand. If we had the flexibility of both, whether it is semiconductor supplies or in-house production, we would probably have less of such a problem," Bharti said. Hence, it's a conscious move to increase the flexibility of production operations, he added. MSI currently has an installed production capacity of around 23 lakh units per annum spread across its plants in Haryana and Gujarat. Bharti said the initiative "comes at a small cost" as it involves a slightly suboptimal format of production. Elaborating on the drop in <keyword id="6357824" type="General" weightage="20" keywordseo="sales" source="Orion">sales</keyword> of the entry level cars, he noted that the cost of acquisition has gone up disproportionately because of the increased regulatory intensity in the past few years. "And the income of the customer in this segment has not taken off. We are hoping that sooner or later, the income growth will catch up, and the small car segment will revive," he added. Bharti noted that the company has also seen reduction in first-time buyers. "...almost a 10 per cent reduction in the percentage of first-time buyers from the market for us. So, it's closely correlated. We are hoping that when the income growth in this segment of the population catches up with the increased cost, and the regulatory intensity does not move up further in the next few years, at some point in time, this segment should come back," he stated. According to the recent SIAM data, entry level car wholesales in India have dropped to 35,000 units in the second quarter this fiscal as compared to the peak of 1.38 lakh cars in July-September 2018-19. Replying to a query regarding overseas shipments, Bharti said that going ahead the company plans a three-fold rise in its exports volume by increasing its exports to 7.5 lakh to 8 lakh units a year by 2030-31. MSI continues to be the largest exporter of cars from India. "Our focus continues to be on Africa, Latin America, Southeast Asia and even the Middle East. Barring the US and China, we will be almost everywhere," Bharti said.

Maruti looking to enhance flexibility in production to roll out vehicles as per market demand

<ul class="summary-list"><li>Supply shortages are holding the <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword> back, but BofA sees <keyword id="6358993" type="UNKNOWN" weightage="60" keywordseo="demand">demand</keyword> as the core issue.</li><li>It's unlikely that supply can outpace demand and restore balance this year, bank economists said.</li><li>Experts must "rethink what constitutes 'weak' or 'strong' data" as <keyword id="31671" type="CITY" weightage="60" keywordseo="markets">markets</keyword> encounter decade-high <keyword id="22195" type="COMPANY" weightage="60" keywordseo="Inflation">inflation</keyword>, it said.</li></ul>Experts have said for months that the post-pandemic economy won't be the same as the one left behind in early 2020.It may also be time to rethink how the economy is performing, <keyword id="6374849" type="UNKNOWN" weightage="60" keywordseo="bank-of-america">Bank of America</keyword> economists said Friday.After months of strict lockdowns and stifled demand, the US economy has whiplashed. Vaccine distribution, stimulus, and the relaxing of economic restrictions saw consumer spending bounce back through the spring. The era of weak demand quickly gave way to widespread supply shortages, and businesses are struggling to rebalance the two.The disparity poses a new risk to the recovery. Popular measures of broad inflation <a href="https://www.businessinsider.com/inflation-outlook-report-pce-index-april-price-growth-reopening-recovery-2021-5">jumped the most since 2008</a> in April as the country reopened further. The Biden administration and the Federal Reserve assert that stronger inflation is expected and will be temporary. Republicans, however, have raised concerns around <a href="https://www.businessinsider.com/republicans-inflation-argument-irresponsible-comparison-biden-stimulus-spending-price-growth-2021-5">the elevated price growth turning permanent</a> as the White House preps new spending packages.While supply bottlenecks are seen by many to be the primary issue, massive demand is powering the imbalance, Bank of America economists led by <keyword id="166851" type="PERSON" weightage="60" keywordseo="Ethan-Harris">Ethan Harris</keyword> said in a note to clients. Trillions of dollars in stimulus and the Fed's ultra-easy policy stance flooded the US with support. Even if bottlenecks are addressed, the country will probably face shortages well after the pandemic downturn ends, according to the bank."Ending the shortages requires that supply first catches up to demand and then grows faster than demand for long enough to restore balance," the team said, adding it's unlikely the supply side can outpace demand growth at least through 2021.The shift from a spending-starved economy to one overwhelmed with demand forces a reevaluation of all sorts of <keyword id="48165" type="ORGANIZATION" weightage="60" keywordseo="economic-data">economic data</keyword>, the bank said. The team pointed to the US housing market as a top example. The market boomed through the pandemic as low mortgage rates spurred new demand. Yet as the sales rate soared to decade-highs, inventory sank to record lows.The buying spree <a href="https://www.businessinsider.com/existing-home-sales-april-housing-market-data-supply-shortage-inflation-2021-5">has since cooled</a>, but price growth is still trending at <a href="https://www.businessinsider.com/home-prices-rise-march-housing-market-outlook-shortage-supply-corelogic-2021-5">its highest levels since the mid-2000s</a>. Like with many other sectors in the US economy, overwhelming demand and insufficient supply are resulting in an insufficient market."In a supply-constrained world we need to rethink what constitutes 'weak' or 'strong' data," the economists said. "The slowing in [housing-market] activity is not a sign of weakness, but of prices rising instead of quantities."Conversely, recent readings of the US labor market might not be as bad as they first seemed, according to the bank. The April jobs report was <a href="https://www.businessinsider.com/april-jobs-report-266000-payrolls-unemployment-rate-labor-market-recovery-2021-5">largely viewed as a huge upset</a>, with job growth slowing sharply and the unemployment rate ticking higher. Yet other data in the report showed positive trends. Wages jumped 0.7%, roughly doubling the typical monthly increase. The average work week grew slightly as well. Coupling those data with the month's job gains, and nominal income grew at an encouraging annualized rate of 15%, the bank said.Still, the new vantage point calls into question whether additional aid is needed to keep the recovery going, the team added. The Fed continues to buy at least $40 billion in mortgage-backed securities each month as part of its emergency easing programs but "it's not clear why" the central bank is maintaining this pace with home prices ballooning and demand holding at elevated levels, the bank said."Why, we wonder, does the country with the strongest data have arguably the most dovish central bank?" the team added.

The supply-demand gap is lifting prices so quickly that it's forcing a rethink of the economy, BofA says

Diesel sales in <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> jumped up sharply in the first half of April as agricultural activity pick-up and trucking increased to meet industrial <keyword id="15308237" type="TOPIC" weightage="60" keywordseo="Demand" source="TOPIC" sourcekeytype="economy,investopedia" meta.keywordsubtype="null" meta.msid="92562122" meta.seopath="d/demand" meta.entityname="Demand" meta.hostid="153" meta.entityid="demand">demand</keyword>, preliminary industry data showed on Monday. Demand for diesel, the most consumed fuel in the country <keyword id="15377301" type="TOPIC" weightage="60" keywordseo="Accounting" source="TOPIC" sourcekeytype="finance,investopedia" meta.keywordsubtype="null" meta.msid="92547403" meta.seopath="a/accounting" meta.entityname="Accounting" meta.hostid="153" meta.entityid="accounting">accounting</keyword> for about two-fifths of the demand, soared over 15 per cent to 3.45 million tonnes in the first half of April when compared to a year ago. Month-on-month sales rose 8.4 per cent when compared with 3.19 million tonnes of diesel consumed in the first half of March that had witnessed seasonal slowdown. Petrol sales rose about 2 per cent to 1.14 million tonnes during April 1 to 15 when compared with the same period of last year. Sales however fell 6.6 per cent month-on-month, the data showed. In the first half of March, petrol sales had fallen 1.4 per cent and diesel 10.2 per cent year-on-year. Consumption of petrol in April first half was 14.6 per cent more than COVID-marred April 1-15, 2021 and almost 128 per cent more than in the same period of 2020. Diesel consumption was up 24.3 per cent over April 1-15, 2021 and 127 per cent higher than in the same month of 2020. With the continued opening of the aviation sector, India's overall passenger traffic at airports inched closer to pre-COVID levels. Reflecting the trend, jet fuel (ATF) demand jumped 14 per cent to 2,84,600 tonnes during the first half of April when compared to the same period last year. It was 35 per cent higher than April 1-15, 2021 and 467.6 per cent more than the same period in 2020. Month-on-month sales however fell 3.8 per cent. India is enjoying steady growth, with support from the services sector as well as the industrial side of the economy. The country's oil demand was supported by strong industrial activity, industry officials said. In terms of products, diesel was the main driver of oil demand as there was a pick up in the agriculture sector, as well as requirements for power generation and industry. Use of the fuel in irrigation pumps and trucking supported diesel. Cooking gas <keyword id="6360114" type="General" weightage="50" keywordseo="lpg" source="Orion">LPG</keyword> sales rose 5.7 per cent year-on-year to 1.1 million tonnes in April 1-15. LPG consumption was 7 per cent higher than in April 1-15, 2021 and 9.2 per cent more than in the first half of April 2020. Month-on-month, the demand dropped 6.37 per cent when compared to 1.18 million tonnes of LPG consumption during March 1-15, the data showed. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/hdfc-hdfc-bank-merger-to-bring-inflows-of-up-to-3-billion-all-eyes-now-on-the-merger/articleshow/99557243.cms">HDFC-HDFC Bank merger to bring inflows of up to $3 billion: All eyes now on the merger</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/diljit-dosanjh-coachellas-first-punjabi-artist/slidelist/99556453.cms">Diljit Dosanjh, the only Punjabi artist to play at Coachella, is a man of many firsts</a>

You Searched For "demand" and got 9 results

Global gold demand plunges, India bucks trend with double digit growth

IANS

Goldman Sachs says global oil demand will bounce back but could be hit hard by the lack of business travel

Saloni Sardana

Demand for oil in China is on pace to slide 20% this month, the biggest shock since the early days of COVID

Carla Mozée

Gold demand went up by 14% in Q3: World Gold Council

IANS

Demand trajectory slightly improves sequentially in March qtr, green shoots emerge, says Dabur

PTI

Gold investment demand tumbled 60% in the first half this year, but people still kept buying jewellery

Shalini Nagarajan

Maruti looking to enhance flexibility in production to roll out vehicles as per market demand

PTI

The supply-demand gap is lifting prices so quickly that it's forcing a rethink of the economy, BofA says

Ben Winck

Diesel sales jump on agricultural demand

PTI

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