CONSUMER CONFIDENCE SURVEY - ECONOMY

News: Consumers optimistic about economic situation, income, employment for next one year: RBI survey

 

What's in the news?

       The most recent bi-monthly survey conducted by the Reserve Bank of India (RBI), known as the Consumer Confidence Survey, revealed a notable surge in consumer confidence, marking its highest level since mid-2019.

 

Consumer Confidence Survey (CCS):

       The Reserve Bank of India (RBI) conducts a bi-monthly Consumer Confidence Survey to gauge consumers perceptions of the prevailing economic situation.

       The survey is conducted across various cities and assesses consumer confidence on parameters such as the economy, employment, prices, income, and spending.

       Participants are surveyed regarding their sentiments on various factors both in the current situation and looking ahead to the future.

 

Key Findings of the Survey:

1. Conduct and Demographics:

       The survey for March 2024 was conducted from March 2 to 11, with over 6,000 participants contributing insights.

       Female respondents accounted for 50.8 percent of the sample, ensuring a diverse representation.

 

2. Current Situation Index (CSI):

       Measures overall consumer sentiment regarding the present economic situation.

       Experienced a 3.4-point increase compared to the previous survey, reaching 98.5, its highest level since mid-2019.

 

3. Future Expectations Index (FEI):

       Analyzes consumer sentiment for the next 12 months.

       Saw a significant uptick, hitting its peak since mid-2019, indicating a positive outlook for the coming year.

       CSI and FEI are compiled based on net responses on economic situation, income, spending, employment, and price level for the current and future periods.

 

4. Households Inflation Expectation Survey:

       Shows a slight increase in the share of households expecting overall prices and inflation to rise over the next three months and one year.

       Reflects sentiments on general prices and various product groups, compared to the previous survey round.

 

5. Improvements in Sentiments:

       Notable improvements in households sentiments regarding the general economic situation and employment prospects, for both the present period and the upcoming year.

       Highlighted positive outlooks for investment activity in India, as emphasized by RBI Governor Shaktikanta Das.