Consumer sentiment highest in at least 62 months, shows CMIE data

The Index of Consumer Sentiments, compiled by the Centre for Monitoring Indian Economy (CMIE), has surged to its highest level since at least March 2019, marking a significant recovery from the lows experienced during the Covid-19 pandemic. The index, which tracks sentiments nationwide, including urban and rural areas, stood at 110.9 in April 2024, reflecting a 5% increase compared to April 2019. While rural consumer sentiment has soared to its highest level since 2019, urban sentiment has dipped to a seven-month low. Income groups across the country have seen varying degrees of recovery, with the lowest earners experiencing a decline in sentiment, while the group earning between Rs. 1 lakh (US$ 1,198.48) and Rs. 2 lakh (US$ 2,396.95) annually saw an 8.3% increase compared to 2019.

Despite the overall positive trend, individual income groups continue to face challenges, with the lowest earners witnessing a decline of 3.4% in consumer sentiment compared to April 2019. Those earning between Rs. 2 lakh (US$ 2,396.95) and Rs. 5 lakh (US$ 5,992.38) and Rs. 5-10 lakh (US$ 5,992.38 – US$ 11,984.76) per annum also struggled, experiencing dips of 2% and nearly 3%, respectively. The highest income group, earning more than Rs. 10 lakhs (US$ 11,984.76) annually, has seen the most significant deviation from 2019 levels, with a difference of 12.5% in consumer sentiment. However, nearly 27.92% of households expect improved conditions for their families in the coming year, indicating cautious optimism among consumers.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.