Just months ahead of the upcoming general elections, RBI’s survey measuring consumer confidence in the month of June spells a bad news for the Modi government.
Just months ahead of the upcoming general elections, RBI’s survey measuring consumer confidence in the month of June spells a bad news for the Modi government. Even though consumer confidence shows signs of improvement in the June 2018, with the current situation index (CSI) climbing by 2.8 points, it remained in the pessimistic zone as the future expectations index (FEI) recorded a marginal fall, RBI survey recorded. The June 2018 round of RBI Consumer Confidence Survey (CCS) shows that just 48.2 percent respondents believe the economic conditions are going to improve in the next one year.
While 24.1 percent people say that the conditions will remain same, 27.7 percent think that economic conditions will worsen. On income front, the respondents are slightly less optimistic than in the last round of the survey in May 2018. Only 49.8 percent of the respondents believe their incomes will rise after a year. While 49.1 percent expect their employment prospects will improve after 12 months, 24.4 percent say employment prospects will worsen, 26.5 percent say things will remain same.
The households continue to remain pessimistic about prices, with sentiments on both the current and future periods declining slightly, the survey showed. The respondents of the survey were marginally less optimistic about their income than in the preceding round of the survey. “Most of the respondents reported household spending over the past year with their sentiments ticking up for both the current period and over the year ahead,” the survey records.
The Consumer Confidence Survey survey was conducted by the RBI in six metropolitan cities namely Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi and obtained 5,264 responses on households’ perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and their own income and spending.