It seems that the Narendra Modi-led government failed to inject confidence in common people in the country as they don’t think that there are enough jobs or the Indian economy is doing really well, the Reserve Bank of India’s (RBI) latest Consumer Confidence Survey, which reflects expectations and perceptions of households in country on the overall price situation, employment situation, their own income and spending and general economic condition, showed. The survey revealed that perception of people in India about the general economic situation of the country has declined and remained in the pessimistic zone as compared with the preceding round. But they are hopeful to see an improvement after a year.
“The current situation index waned in the September 2018 round reflecting worsening of consumers’ perception on the general economic situation and the employment scenario,” the survey showed. Responses on the general economic situation largely tracked those on the employment situation with the outlook on employment for the year ahead dipping below expectations in the previous round.
The survey was conducted in 13 major cities – Delhi, Mumbai, Ahmedabad, Bengaluru, Chennai, Bhopal, Jaipur, Guwahati, Hyderabad, Lucknow, Patna and Thiruvananthapuram. It collected about 5,264 responses on the perceptions and expectations of households.
Consumer Confidence Index saw a decline and fell to 94.8 points from 98.3 in the previous round of survey that was conducted in June 2018. One-year-ahead expectations however went up to 121.1 points from 119.8 points in the June 2018 round, it revealed.
As per the latest findings, while nearly 44.3% people felt that the economic condition had worsened, about 33.7% said that it has improved. Interestingly though, 53.2% people believe that the situation is expected to improve in the next one year ahead expectations survey.
People who participated in the survey expressed less optimism on the question of jobs as about 45.5% said that employment conditions in the country became worse, 35.2% felt that there was an improvement and nearly 26.4% said that situation has been the same. However, over 54.1% people think that this would improve in next one year ahead expectation compared with the current scenario.
About the price situation, a huge percentage of people – 88.3% – said that price level went up and 80.1% participants said it would remain high in the year-ahead period. But, majority of participants remained pessimistic about the price situation. Also, majority of respondents expect the income level to increase in the next one year.