Consumer sentiments weaken in Dec, pose challenge to recovery of economy

In 2021, the growth in the proportion of households reporting an improvement in incomes has not translated into a proportionate increase in households reporting an inclination to buy consumer durables

Consumer sentiments seem to have weakened in India during December 2021. Trends seen in the weekly estimates and also in the 30-day moving averages of the index of consumer sentiments during December suggest that the month is likely to register a fall in consumer sentiments compared to November. This would be the first month to record a fall in sentiments since June 2021.

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. The Index