Mean reversion in consumer sentiment index

The week ended April 23 was a second straight week of decline for the CMIE Consumer Sentiment Index

The BSE-CMIE-UMich Index of Consumer Sentiment declined 4.5 per cent during the week ended April 23 -- from 102.3 to 97.7. The index had remained above 100 consecutively for the first three weeks of April. The return to its sub-base level indicates that the increase in April so far was more likely a response to short-term gains on loan waivers. It is equally likely that structurally, consumer sentiment is, in fact, weak.

The week ended April 23 was the second straight week of decline in the index. The index had fallen 2.4 per cent in the preceding week. The cumulative