Consumer Sentiment On Economy, Income And Employment Dips For The Year Ahead: RBI Survey

Consumer confidence in India has declined for the second consecutive survey round, reversing a prolonged upward trend seen in the post-Covid period, according to the latest bi-monthly consumer confidence survey (CCS) by the Reserve Bank of India.

The survey reveals that household expectations on major parameters, except for spending, have moderated. Consequently, the current situation index (CSI) dropped to 93.9 in July 2024, down from 97.1 two months earlier.

While households remain optimistic about economic conditions for the coming year, this optimism has waned compared to the previous survey round.

A lower confidence in the general economic situation, employment, and prices contributed to a 4.1-point decline in the future expectations index (FEI), which fell to 120.7 in July 2024, from 124.8 in May 2024.

Sentiments regarding the current employment situation and personal income have worsened for the second consecutive survey round, with the outlook for both parameters also softening, though still within optimistic territory.

The survey collects current perceptions compared to a year ago, as well as one-year-ahead expectations of households regarding the general economic situation, employment scenario, overall price situation, personal income, and spending across 19 major cities.

The latest round of the survey was conducted from 2 July to 11 July 2024, covering 6,062 respondents. Female respondents accounted for 54.4 per cent of this sample.