Number Theory: Reading GDP numbers with consumer sentiment data

World’s fastest growing major economy is suddenly having second thoughts about its growth prospects. The doubts have been triggered by a larger than expected slowdown in the September quarter growth numbers, the RBI overestimating the economy’s growth prospects in its previous projections and a turbulent global environment going ahead. How pertinent and concerning, if at all, are these growth concerns? What lies at the root of the problem? Some of these questions can be understood better if one reads the GDP numbers with the Consumer Confidence Survey data released by the RBI. Here are three charts which offer a glimpse into what might be happening in the economy.