Consumer confidence improves in Sept on better economic conditions: RBI

Consumer confidence improved in the September 2024 Survey round compared to the previous round in July due to better perceptions about the general economic, employment, and income conditions, according to the Reserve Bank of India’s (RBI) forward looking survey.

Current situation index (CSI) improved by 0.8 points to 94.7 though it remained below the threshold level of 100.

Consumers’ optimism for the year ahead, measured by the future expectations index (FEI), improved by 0.7 points to 121.4 in the latest survey.

The survey collected current perceptions and one-year-ahead expectations of households on the general economic situation, employment scenario, overall price situation, own income, and spending across 19 major cities.

RBI’s latest round of the survey was conducted during September 1-10, 2024, covering 6,087 respondents. Female respondents accounted for 49.2 per cent of this sample, RBI said in a statement.

The households’ median perception of current inflation declined by 10 basis points (bps) to 8.1 per cent compared to the July 2024 round. Their inflation expectations for three months and one year ahead periods moderated by 20 bps and 10 bps, respectively.

The share of respondents anticipating rise in both general prices and inflation in the short term and one-year ahead reduced from the previous survey round.

Price and inflationary pressures eased across all product groups.

Optimism in manufacturing for October-December 2024 (Q3FY25) improved in the September round of the survey.

Services and infrastructure companies continued to maintain a highly optimistic outlook for Q3.