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Consumer Sentiments βeta A collaborative effort of BSE, CMIE & University of Michigan
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Consumer perceptions and expectations play an important role in determining the future course of an economy. Timings of decisions to buy durables influence the course of the entire economy. Large and infrequent spending decisions are discretionary and are associated with planning and deliberation. These are not impulsive decisions. It is this planning element of these decisions that make them important in determining the course of the economy. Further, these decisions to make large, infrequent purchases are not based solely on the economic conditions of the individuals or families. Such decisions are also based on perceptions and expectations of the performance of the economy. These decisions therefore provide a unique view into the forces that would determine the course of the economy.

Consumer sentiment is usually measured in terms of consumers’s perceptions regarding their current well-being, their propensity to spend on consumer durables and their expectations of their future well-being. Consumer sentiments also take into account perceptions that consumers have regarding current and prospective economic conditions of the country as a whole.

BSE, CMIE and University of Michigan have joined hands to produce a set of three indices on consumer sentiments in India. Hitherto, consumer sentiments have not been captured comprehensively in India. Specifically, such indices do not exist for rural India and even for the medium and small towns of India.

BSE, CMIE and University of Michigan have decided to produce consumer sentiment indices that represents India as a whole including towns of all sizes and also rural India. We recognise that consumer sentiments in rural India are as important as those in urban India, and small towns are just as important as the bigger towns.

Similarly, timeliness of these estimates is as important as is comprehensiveness.

We produce three indices of consumer sentiments for trailing 30-days every day. Besides, we also produce the monthly measures of these indices.