Consumer Confidence Plummets In July, Current Situation Index Records All Time Low

The Reserve Bank released the results of the July 2020 round of its Consumer Confidence Survey (CCS) yesterday. In view of the Covid-19 pandemic, the survey was conducted through telephonic interviews during July 1-12, 2020 in thirteen major cities, viz., Ahmedabad; Bengaluru; Bhopal; Chennai; Delhi; Guwahati; Hyderabad; Jaipur; Kolkata; Lucknow; Mumbai; Patna; and Thiruvananthapuram. Perceptions and expectations on general economic situation, employment scenario, overall price situation and own income and spending have been obtained from 5,342 households across these cities.

The Consumer confidence plummeted in July 2020 with the current situation index (CSI) recording its all-time low; the future expectations index (FEI), however, charted back into the positive territory indicating signs of recovery for the year ahead. Consumer perception of the prevailing economic situation, employment scenario and own income was significantly lower than that in May 2020; respondents were, however, somewhat optimistic about these parameters for the coming year vis-a-vis the previous survey round. Most respondents reported reduction in discretionary spending though their overall spending increased during the last one year; they do not expect to increase non-essential spending in the coming year as well.

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