Future imperfect

The Index of Consumer Sentiments inched up 1.1 per cent in June 2022. This was better than the 0.8 per cent growth pencilled in May. But it still reflects the sluggish growth of sentiments that has been prevalent in recent times. Growth slowed from 4-5 per cent in January and February to 3 per cent in March and April, to around 1 per cent in May and June.

The gradual loss of momentum of growth in sentiments can be traced to the deterioration in consumer expectations from the future. Households continue to report an improvement in their current well-being, but