MUMBAI : Surveys conducted by the Reserve Bank of India (RBI) show that consumer confidence continued to increase in July while inflation expectations were revised. The majority of respondents are optimistic about the overall economic outlook, the RBI said.
The latest Consumer Confidence Survey collected current perceptions from a year ago and expectations one year into the future on the overall economic situation, employment scenario, price and earnings situation, in addition to trends. spending trends across 19 major cities. The survey was conducted from July 7 to July 14, including 6,083 respondents.
“Consumer confidence continued to recover in successive rounds of surveys following historic lows recorded in July 2021, although it remains in pessimistic territory. The Current Situation Index (CSI) increased by 1.4 points as a result of improved perception of employment, income and household spending,” the RBI added.
The Current Situation Index improved to 77.3 in July from 75.9 in the previous round. According to the survey, consumers expressed optimism about the outlook for the economic situation and spending next year but was somewhat countered by some weakness in expectations for employment, household income and income. price levels relative to May 2022. As a result, the Future Expectations Index (FEI) recorded a slight improvement from 113. “The majority of households reported an increase in their current spending. up and predict that this trend will continue next year,” it added.
Meanwhile, the Household Inflation Expectations Survey shows that average household inflation over the current period has been revised down from 80 basis points (bps) to 9.3%. in the nearest round. Their three-month and one-year ahead average inflation expectations fell by 50 bps and 60 bps, respectively, compared with the May survey round.
“Average inflation expectations adjusted for most respondent categories for the current period, as well as the next three-month and one-year periods.”
According to the RBI, the proportion of households expecting higher inflation fell for all product groups compared to the previous round. The index for current perception of spending rose to 66.3 in the latest survey from 60.9 in the May survey, while perception of spending a year ago rose to 68, 3 from 66.7.
Current perceptions of income levels, although still in the negative range, have shown an improvement in sentiment and increased to -17.7 from -18.9, even next year, perception earnings fell slightly to 43.3 from 44.
Survey respondents also showed optimism about job opportunities, with the current perception index improving from -26.5 from -27.6 to -26.5. The perception of the general price level in the economy also improved, with the index increasing from -94.9 to -94.3.
To be sure, while most parameters show improvement in sentiment, the current perception of the economic situation fell to -41.5 in the July survey from -40.2 in the survey. close before. However, expectations for next year improved to 7.6 in the latest survey from 6.
Catch them all Business newsletter, Market News, Hot news Events and Latest news Update on Live Mint. Download Mint News app to get Daily Market Updates.
