Consumer Sentiment still weak: CMIE

15 Jul 2022 , 10:11 AM

The consumer sentiment index increased by 1.1 percent in June 2022, indicating that consumer mood is still weak. It has drastically slowed down from 4-5 percent in January and February to 3 percent in March and April, the Centre for Monitoring Indian Economy reported, however, it is still better than the 0.8 percent growth in May.

The Index of Consumer Expectations (ICE) expanded at a far slower rate of 13.2 percent between January and June 2022, CMIE estimates, compared to the Index of Current Economic Conditions (ICC), which increased by 28.1%.

While the ICC expanded by 2.65% in June, the ICE remained flat at its level from the previous month, indicating that while families’ existing circumstances are improving, their expectations are not expanding at a rate that is comparable.

“Although household earnings are progressively rising, their outlook on the future is deteriorating. Their willingness to spend on non-essentials is impacted by this loss, “In its weekly labor market research, CMIE stated. This pessimism about the future was only seen in rural households.