The Consumer Mood Index grew by 4% in January 2022, according to the Centre for Monitoring Indian Economy, due to an improvement in families’ evaluations of their current incomes and desire to spend on non-essentials.
The consumer mood index in January 2022 was 59.93, according to CMIE. This was down 0.58 percent from its November 2021 high of 60.28. However, in January 2022, the index is still 43.8 percent lower than in January 2020, when it was 106.56.
According to CMIE’s weekly labour market report, “the increase in consumer mood recorded in January was not only insufficient to make up for the ground lost in December, but it also suggests less improvement in consumers’ future expectations.”
The average weekly consumer sentiment index (CSI) for the first three weeks of January was 59.9, according to CMIE data, with the 30-day moving average of the index at 61 on January 23. This score is higher than the 60.3 reported in November 2021, before the index fell to 57.6 in December.
The Consumer Confidence Index (CSI) is a measure of consumer confidence in their financial situation and ability to make purchases. Consumers with a higher index score are more confident in their financial situation and, as a result, are more inclined to purchase more goods and services. Consumer spending rises as a result, and the economy rebounds.
11.4 percent of families reported a rise in household income over the previous year in January 2022. Although this is not a large percentage, it is the best it has been in a long time.
Since April 2020, the percentage of families reporting an increase in income over the previous year has never topped 10%. The percentage of such residences has climbed considerably since August 2021, when it was only 4.6 percent, according to the data.
Similarly, the percentage of households reporting an income loss from a year ago fell to 38.1 percent, the lowest level since April 2020.
According to the CMIE, about one-third of households said their incomes were higher than a year earlier before the pandemic, while just about 10% stated their incomes were lower.
“However, in January 2022, an improvement in household wage perspectives was the most important driver in the recovery of emotions,” it concluded.
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