Consumer confidence showing gradual improvement, says RBI survey

The consumer confidence has shown gradual improvement for the third successive round of the survey. The current situation index (CSI) increased marginally on the back of better sentiments on general economic situation, household income and spending, according to the Reserve Bank of India (RBI).

RBI said one year ahead outlook, as reflected by the future expectations index (FEI), remained in the optimism zone. The index, however, moderated as the latest survey period coincided with the surge in Covid-19 infection cases in January 2022.

The Reserve Bank released the results of its Consumer Confidence Survey (CCS) for the January 2022 round. The survey was conducted during January 02 to January 11, 2022 in 13 major cities including Ahmedabad, Bengaluru; Bhopal, Chennai, Delhi, Guwahati, Patna; and Thiruvananthapuram. The survey obtained current perceptions (vis-a-vis a year ago) and one year ahead expectations on general economic situation.

The survey also covered employment scenarios, overall price situation and own income and spending from 5,387 households across these cities.

Households reported further increase in overall expenditure driven by higher essential spending; their sentiments on non-essential outlay, however, remained subdued.

A separate survey of Households’ Inflation Expectations showed they expect inflation to be more range bound in the near to medium term as reflected in the reduced gap between their current inflation perceptions and the future inflation expectations.  The share of respondents expecting higher inflation has significantly reduced from the November 2021 round of the survey.