Consumer confidence declines marginally, households show higher optimism on one year ahead outlook

Reserve Bank of India (RBI) has released the results of November 2024 round of its bi-monthly consumer confidence survey (CCS). The survey collects current perceptions (vis-?-vis a year ago) and one year ahead expectations of households on general economic situation, employment scenario, overall price situation, own income and spending across 19 major cities.

Consumer confidence for the current period declined marginally owing to weaker sentiments across the survey parameters except household spending; the current situation index (CSI) moderated by 0.7 points to 94.0 in November 2024. Households displayed somewhat higher optimism on one year ahead outlook for major economic parameters, except prices; the future expectations index (FEI) improved by 0.5 points to 121.9 in the latest survey.

RBI showed that even as the respondents' sentiments towards current earning moderated marginally, they displayed high optimism on future income which was consistent with their surmise on employment conditions. Households anticipated higher spending over one year horizon on the back of higher essential as well as non-essential spending.

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