Consumer sentiment in India dropped in August 2022 and the first week of September, after improving significantly the previous month, according to the Centre for Monitoring Indian Economy, with a considerable drop in urban sentiment. According to CMIE, the Index of Consumer Sentiments (ICS) fell by 0.5% in August after rising by an astonishing 6.7% in July and 3.1% in the first week of September.
Even the Index of Current Economic Conditions (ICC) decreased by 1.2% in August, owing to a steep drop in rural families’ inclination to purchase consumer durables. According to CMIE, the ICE for urban India declined by a significant 2.8% in August, demonstrating worsening in all three crucial future views.
The ICS fell 0.5% in August, but “rural India’s precipitous drop in readiness to spend on consumer durables and urban India’s cynicism about their future well-being is worisome,” CMIE stated, adding that a larger decline in the ICS in the first week of September exacerbates this concern.