economy

Consumer confidence continues to improve: RBI survey

Consumer confidence continues to improve: RBI survey

MUMBAI : Consumer confidence continued to improve from the historic low recorded in July 2021 though the assessment for the current period remained in pessimistic terrain, according to the latest Reserve Bank of India’s survey on consumer confidence. Consumer confidence index stood at 62.3 in November showing positive sentiments with signs of improvement compared to last round in September when it stood at 57.7, according to the survey released on Wednesday. The apex bank said The perception for general economic situation, employment scenario and household income displayed signs of recovery. Consumer confidence for one year ahead period however, sustained the momentum witnessed in the September 2021 survey round with the future expectations index improving further in November 2021, aided by higher optimism on general economic situation and employment scenario. The future expectation index improved to 109.6 in November from 107 in September. An index value below 100 represents pessimism, while above 100 signals optimism. While current perception for the economic situation, though still negative, showed improvement at (-54.2) in November against (-57.4) in September, perception for employment too showed improvement at (-46.4) in November against (-57.6) in July. Perception for price level and income deteriorated compared to the last round of survey. While price level came in at (-94.5) in November against (-90.6) in July, income came in at (-40.6) in November against (-47.8) in September. The RBI said with gradual withdrawal of Covid-19 related restrictions in most states, the survey was conducted through physical interviews during October 25 to November 3, 2021, in 13 major cities. The survey obtained current perceptions (vis-à-vis a year ago) and one year ahead expectations on general economic situation, employment scenario, overall price situation and own income and spending from 5,310 households across these cities. The survey said households were more confident for the year ahead, which was reflected in the continued upward trajectory of the future expectations index (FEI), buoyed by higher optimism for household income and employment scenario. With higher expenditure on essential items, households perceived a rise in overall expenditure; sentiments on non-essential expenditure, however, continue to be pessimistic and did not reflect improvement over the coming year. The RBI also released the results of the November 2021 round of the Inflation Expectations Survey of Households, conducted through the same period 18 major cities. The results are based on responses from 5,910 urban households. Households expected inflation to harden in the near and medium term, as the gap between current perceptions and future expectations widened for both time horizons The proportion of respondents expecting higher inflation in the next three months and over the year ahead rose in November 2021, the survey said, adding that expectations for overall prices and inflation were generally aligned to those for non-food commodities. Download.

economy 2021-12-08 Livemint