Consumer sentiments fall short

Expectations of household incomes a year later turned positive in March 2023 for the first time since April 2020

Consumer sentiments improved by a marginal 1.2 per cent in March 2023. This is a small increase compared to the 4 and 5 per cent increases registered in January and February, respectively. The increase also seems to be a bit of a struggle. The increase in the overall sentiments is not a reflection of mild all-round improvements. It is a mix of some vigour in urban regions and significant indifference in rural India. Most importantly, while expectations and current incomes seem to have improved, the intentions to spend on consumer durables have not. We deal with this reticence first.

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