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