Consumer confidence improving: RBI
Sentiments on the economic situation, jobs and income got better, shows survey
MUMBAI: Despite geopolitical challenges and concerns over rising inflation, Indian consumers’ perception of current and future economic conditions continues to improve, according to the latest Consumer Confidence Survey conducted by the Reserve Bank of India (RBI) for the March 2-11 period.
“Consumer confidence for the current period continued on its recovery path, witnessed since mid-2021, though the assessment compared to a year ago remained in negative zone. The current situation index improved further in March 2022 on the back of improved sentiments on general economic situation, employment, and household income,” the survey noted.
The current situation index improved from 64.4 in the previous survey, conducted in January, to 71.7 in March. The survey obtains current perceptions visà-vis a year-ago and one-yearahead expectations on the general economic situation, employment, prices, and own income and spending. It was conducted across 5,984 households in 19 cities. The survey showed improvements across all categories with consumer perception of the overall economic situation improving from -48.9 in the previous survey to -40.5. Perceptions about the employment situation improved from -48 to -35.9. Consumers were more positive about their incomes and spending, with perceptions on income improving from -37.4 to -26, and those on spending rising from 48.4 to 53. “Households’ opinion about spending remained positive and was aided by a rise in essential and discretionary spending,” it noted.
Consumers retained a glum view of prices of commodities at -92.1. The survey showed that the one-year outlook, as measured by the future expectations index (FEI), also continued on a recovery path which was interrupted by a dip in the January 2022.
Households’ median inflation perceptions for the current period was unchanged at 9.7% in the latest survey round, while the expectations for both three months and one year ahead rose by 10 basis points each to 10.7% and 10.8%, respectively, as compared to January 2022 round, showed RBI’s Households’ Inflation Expectations Survey.
“For a majority of population and age groups, uncertainty in inflation expectations increased for both three months and one year horizons, as compared to the previous survey round. Three-month-ahead expectations for overall prices and inflation were generally aligned to those for food and non-food products, while one-year-ahead expectations were more aligned to those for non-food products and services,” it noted.