RBI Survey: Consumer Confidence on the Rise

The Reserve Bank of India’s (RBI) recent survey conducted in March 2024 indicates a significant improvement in consumer confidence for the year ahead. The Future Expectations Index (FEI) rose by 2.1 points to reach 125.2, the highest level since mid-2019. This surge in optimism is attributed to households’ positive sentiments regarding the general economic situation, employment prospects, and discretionary spending.

Positive Sentiments Drive Optimism

Households express confidence in the current economic landscape and foresee brighter employment opportunities in the coming year. Moreover, their outlook on discretionary spending has improved, reflecting a bolstered consumer sentiment. Respondents note an improvement in their income situation compared to the previous year and anticipate further growth in the year ahead.

Methodology and Sample Composition

The survey, part of RBI’s bi-monthly Consumer Confidence Survey (CCS), gathers perceptions and expectations of households regarding various economic indicators across 19 major cities. Conducted from March 2-11, 2024, the survey covered 6,083 respondents, with females comprising 50.8% of the sample.

Inflation Expectations and Trends

In parallel, the Households’ Inflation Expectations Survey reveals a moderation in the percentage of households expecting overall prices and inflation to increase over the next three months and one year. Expectations regarding general prices for the one-year horizon remain closely aligned with food prices and housing-related expenses.

Piyush Shukla

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