RBI Consumer Confidence Index
The Reserve Bank of India recently released the report of Consumer Confidence Survey. The survey was conducted in major cities of the country over 5,000 respondents.
Key Highlights of the survey
- The Consumer Confidence Index declined from 55.5 points in January 2021 to 53.1 points in March 2021.
- The Future Expectations dipped from 117.1 in January 2021 to 108.8 in March 2021.
- When the index measure is above 100, it signals optimism and while it is below 100, it represents pessimism.
- Most of the consumers reported higher overall expenditure. According to the survey, this scenario is to continue in the coming year despite the moderation in discretionary spending.
- The consumers expectation on general economic situation and employment situation for the year ahead was also pessimistic.
About Consumer Confidence Survey
The Survey measures consumer perception on five economic variables such as employment, economic situation, price level, spending and income. The Consumer Confidence Survey has two main indices namely current situation index and future expectations index. The future expectations index measures what consumer thinks about the change in an economic issue one year ahead. The current situation index measures the change in consumer perception over an economic issue in the last year.
The Consumer Confidence Survey is conducted every two months by the Reserve Bank of India. The survey is conducted to measure how pessimistic or optimistic the consumers are regarding their financial situation.
How was the survey conducted?
The survey was conducted through telephonic interviews. It was conducted in major cities such as Bengaluru, Chennai, Delhi, Hyderabad, Ahmedabad, Jaipur, Lucknow, Patna, Thiruvananthapuram, Mumbai.
Category: Reports & Indexes Current Affairs