Fitch 2012 Indian jewelery industry demand is expected to continue slowing , China jewelry

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rating agency Fitch Ratings (Fitch Ratings) released a report on Wednesday ( May 9 ) , said demand for the jewelery industry in India will continue to slow down in 2012 , and the overall volume will increase by less than 4% . thereports that the low trading volume growth may be attributed to the reduction of the export and local markets in personal disposable income . Jewelry segment enterprises to adopt the cost structure of weight-loss , as well as macroeconomic factors further downstream impact on the jewelry industry will be limited , which may limit its operating margin as in 2009 , as further deterioration .Fitch said the short-term risks of the global economy has declined , while household balance sheets reduce the continued leverage risk (especially in the U.S.) , as well as savings focus may limit personal discretionary spending . With the relative improvement in view of the economic activity from 2008 to 2009 , the demand for traditional export markets ( such as the United States , Hong Kong and the United Arab Emirates ) starting from the 2009 level rise . In any case , Russia , China and East Asian countries , demand is likely to give rise to the easing of market segments . Similarly , from a volume perspective , 85% of the export accounted for the jewelry industry enterprises still maintain flat .The bank believes that the Indian family jewelry purchase depends largely on personal discretionary spending capacity , the latter by the impact of high inflation and wage growth slowed to promote savings rate fell . In addition , the emergence of alternative investment options , such as gold ETF, gold bullion , may cut structural demand for gold jewelry as an investment option . Therefore, the business risks facing the jewelery industry expected to increase , and may reflect the higher volatility of earnings and surplus , consistent with the business cycle .