December likely to see fall in consumer sentiment: CMIE

This would be the first month to record a fall in consumer sentiments since June 2021, CMIE said in its weekly labour market analysis.
For representational purposes (Express Illustrations)
For representational purposes (Express Illustrations)

NEW DELHI: December is likely to register a fall in consumer sentiments compared to November, which may stall the recovery of the Indian economy, according to the Centre for Monitoring Indian Economy (CMIE).

This would be the first month to record a fall in consumer sentiments since June 2021, CMIE said in its weekly labour market analysis.

“Consumer sentiments have been improving in each of the five months since July 2021. In the process, the sentiments recovered from the fall during the second wave of Covid-19 spanning April, May and June 2021,” CMIE said, adding the proportion of households that believe that this is a good time to buy consumer durables is likely to end at 5.7% in the quarter ending in December 2021, which is better than the 3.8% pencilled in the quarter of September 2021, but lower than the 7.1% recorded in the quarter of December 2020.

CMIE’s Consumer Sentiments Index (CSI) is a handy barometer to measure the mood of households in India, The index is based on surveys of more than 150,000 households across rural and urban regions.

Explaining the overall picture, it says the Index of Consumer Sentiments was at 56.6 in March 2021, which following the second wave of Covid-related restrictions, fell to 47.7 by June 2021. 

However, it said, the recovery was quick as the index had touched 58.2 by September 2021.

“Losses of the quarter of June 2021 were recovered in the quarter of September 2021. But, the precipitous fall in sentiments suffered during the first wave of Covid-19 still remains largely uncovered.”

The index rose by 2.1% in October and then by 1.2% in November 2021. “In December, the index is seen losing ground,” it said.

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