Consumer sentiments in India plummet

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.