The consumer confidence dropped further in January 2020 as against the last round, RBI's Consumer Confidence Survey released on Thursday said.
The consumer confidence dropped further in January 2020 as against the last round, RBI’s Consumer Confidence Survey released on Thursday said. However, the future expectations index remained positive, implying an improvement in the last survey. The existing perception of the general economic situation, price levels, and household income continue to remain weak as against the last survey. However, the one year ahead expectations on employment improved marginally over the previous round. “Most households perceived prices and spending having increased during the past year and expect a further rise in expenditure over the next one year. The households reported lower spending on non-essential items as compared to one year ago”, the RBI survey said.
The consumer confidence index is based on the current perception of the economic situation, employment, price level, and income weakened further in November 2019 vis-a-vis the year-ago period, according to the Reserve Bank of India’s November 2019 round of consumer confidence survey. The survey was conducted in 13 major cities including Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Patna, and Thiruvananthapuram. The survey covers perceptions and expectations on the general economic situation, the employment scenario, the overall price situation, and own income and spending are obtained from 5,389 households across these cities in the country.
Meanwhile, it comes amid the ongoing slowdown in the economy on account of a variety of factors. The Q2FY20 GDP growth was recorded at a mere 4.5 per cent. The first advance estimates for the GDP project the growth at just 5 per cent. The government announced a slew of measures in the past few months to boost growth and even budget 2020 contained various measures in this regard.