Rains key to consumer sentiments now

The recovery of consumer sentiments in rur­al India in July is likely a reflection of the improved economic prospects of the agricultural sector

Consumer sentiments improved dramatically in July 2022. Fast frequency indicator — the 30-day moving average — had indicated acceleration in the Index of Consumer Sentiments (ICS) by mid-July. Gains made during the second and third weeks of July were largely sustained through the end of the month although there was some weakening of sentiments in the last week. Consumer sentiments were weak in the first week of August, too. Nevertheless, the overall performance in July was remarkable.

July 2022 saw a turnaround in consumer sentiments after four months of substantial weakening of the pace of its growth. The ICS grew