Critical
Consumers adjust to a supply squeeze
Consumers increasingly borrow for electronics due to rising prices and accessible digital credit, straining budgets. This surge is likely short-lived. Electronics makers offer lower-spec products. This credit-led consumption, a response to supply constraints and inflation unlike post-Covid demand, offers temporary economic support but reveals fragility. Banks lend to households given low corporate borrowing. Its sustainability is precarious, vulnerable to persistent inflation and slowing GDP, risking unraveling if budgets stretch too thin, suggesting an uncertain future.
Economic Times · ET Bureau · Jul 8, 2026 at 7:09 PM