Google trends is a great tool and as I was toying with different data points which should show deterioration at this stage in India’s economic cycle, a cycle when both political and economic news starts becoming negative,I was struck by the collapse in web search for “Housing loan”.
Google search for this item has just touched a 5 year low.
Now I am aware that Pradhan Mantri Aawaas Yojana is popular and the demand for loans in the subsidized segment is still very high but any person capable of taking a housing loan will do some online query before finalizing it because it is a big investment. Only when the future starts becoming uncertain,a rational human being thinks to postpone this biggest investment of his life. This news comes at the worst time for NBFC and HFC which are already grappling with Liquidity issues.
Mortgage and other discretionary spending along with govt spending has also kept economy buoyant in absence of Private capital expenditure and hence this forward looking indicator sounds trouble for GDP growth.