The All India Consumer Sentiments Index, measured by the BSE and CMIE, has hit a one-year low at 92.25 compared to 99.65 a year ago.
This comes even as the wholesale price index based inflation jumped up to a 39-month high of 6.55 per cent.
The daily index, a joint initiative of the BSE, the Centre for Monitoring Indian Economy (CMIE) and Survey Research Center, University of Michigan, measures consumer sentiment, expectations and the perceived economic scenario.
The index for all three parametres are at its lowest since it was launched in 2016.
According to data on the BSE website, consumer sentiments is the lowest in Kerala at 56.99 and highest in Maharashtra at 111. 65.
How it is measured?
Consumer sentiment in India are measured on the lines of the work done in this regard by the Survey Research Center at the University of Michigan. This effort, called the Survey of Consumers, began in 1946 and has produced several measures that are well established lead indicators in the US. The Index of Consumer Expectations, produced by the Survey of Consumers, is included in the Leading Indicator Composite Index published by the US Department of Commerce.
Like the Survey of Consumers conducted by the University of Michigan in the US, Indian respondents were asked five questions, with the information being used to generate three indices.
The sample of households is CMIE’s panel of households comprising over 161,183 households. This is the largest sample of individuals from which data is gathered on consumer sentiments in India.
It also generate the following three indices from the above:
Index of Consumer Sentiment
Index of Consumer Expectations
Index of Current Economic Conditions
On an average 1400 households are surveyed everyday. About 250 interviewers conduct a face-to-face interviews with the respondents. These interviews are well spread out over the entire country across both rural and urban regions. Data is collected through a mobile phone application and validated in real-time.
This capture of consumer sentiments on a daily basis from a large and random sample of households with the help of technology enables us to estimate trailing 30-day measures of consumer sentiments. It also allows us to generate a set of monthly measures of consumer sentiments.
