Will consumer-durables slump continue into December?

The output for consumer durables fell as much as 21.5 percent in November, index of industrial production data released Friday showed.

Analysts said the decline reflects the complete falling-off in consumer demand as the economy continues to grind through the double whammy of high inflation coupled with low growth.

In fact, an Angel Broking report says the fall in consumer durables output was responsible for shaving a full 3.3 percent off the headline IIP figure, which stood at a negative 2.1 percent in the month.

Also read: IIP contracts: Consumption hit shows extent of slump

Weakness in sales of home appliances, cars, and gems and jewellery were the chief reasons behind the decline. In fact, car sales for 2013 fell 9.6 percent, the first decline in 11 years.

However, a turnaround in demand may still be some way off and according to an analysis by Karvy's Kruti Shah, the bad news is likely to continue into November.

"Two wheelers, which remained robust [in November] also slowed down in December," Shah says in the report. This means that part of the auto industry that had helped counterbalance the fall in car sales is likely to give way.

Further, a relative fall in temperatures in December, compared to the last year, may result in weak sales of air conditioners, the report says. ACs had clocked double-digit growth in November.