June consumer sentiment stays sluggish

Consumer sentiments continue to be sluggish with its index growing by 1.1% in June 2022. Though better than the 0.8% growth in May, it has slowed down significantly from 4-5% in January and February to 3% in March and April, the Centre for Monitoring Indian Economy said.

According to CMIE, the Index of Current Economic Conditions (ICC) grew 28.1% between January and June 2022 but the Index of Consumer Expectations (ICE) grew at a much slower pace of 13.2%.

In June, while the ICC grew by 2.65%, the ICE stagnated at its previous month's level, which means that while the current condition of households is improving, their expectations are not growing similarly, it said.


"Household incomes are improving slowly, but their perception regarding the future is eroding. This erosion impacts their propensity to spend on non-essentials," CMIE said in its weekly labour market analysis.

This despondency regarding the future was limited to the rural households.