Aug 8 Reuters Indian consumer products39; sales slowed sharply to a morethanoneyear low from April to June due to softening demand for personal care products and packaged wheat flour, especially in urban areas, market researcher NielsenIQ said on Thursday.

The overall sales volume growth slowed to 3.8 in the second quarter, compared with growth rates of 6.4 to 8.6 in the past four quarters, largely due to macroeconomic headwinds, NielsenIQ said, without detailing the factors.

India39;s retail inflation hovered around 5 in the quarter, mostly due to high food prices, forcing consumers in the world39;s most populous country to cut back wherever possible to make ends meet.

The sales volume growth in rural areas slowed to 5.2, from 7.6 in the previous quarter, but fared better than urban markets, where growth slowed even more sharply to 2.8 from 5.7.

The growth in rural pockets outpaced urban areas for the first time in five quarters in the JanuaryMarch period as consumer majors including Dovesoapmaker Hindustan Unilever trimmed prices to win back consumers.

In the coming quarters, packaged goods makers including ruralcentric Dabur India and Emami expect a further boost, helped by better monsoon and higher government spending, which usually translate to higher consumer spending.

The timely arrival of monsoon, coupled with a ruralcentric budget with a focus on rural infrastructure, agriculture and employment is a key positive for the sector, Dabur CEO Mohit Malhotra…