RBI Consumer confidence Survey: Highlights

According to the Consumer Confidence Survey carried out by the Reserve Bank of India, it has been observed that the consumer confidence has seen the lowest-ever level in July with the citizens becoming more pessimistic regarding their jobs, the income and spending and the overall situation of the economy.

What does Survey Say?

• The consumer sentiment has been in the decline since March and a further collapse in July to reach 53.8, which is well below the 100- mark that demarcates the pessimism and optimism in the economy.
• It has been reported that the employment scenario has degraded in the country along with income. Discretionary spending has also reduced in the economy.
• The inflation expectations of households in the country are rising constantly making it difficult for the central bank to cut the policy rates in its bi-monthly monetary policy review.
• It has also been observed that the consumers are becoming a bit optimistic regarding the coming year.
• This survey collects data from 13 Indian cities and covers more than 5000 households in the country.

What is Consumer Confidence Survey?

It is conducted every two months in order to find out how optimistic or pessimistic the consumers are regarding their financial situation. This index measures the change in consumer perception on the financial situation in the last year and the future expectations. The main parameters are – Economic situation, Employment, Price Level, Income and Spending. This is carried out by the Reserve Bank of India.

Month: Current Affairs - August, 2020