The Reserve Bank of India (RBI) released the results of its 'Consumer Confidence Survey (CSS)' June 2018 on Wednesday. The survey showed an improvement of 2.8 points in consumer confidence for the current situation (current situation index) but remained in the pessimistic zone. The future expectations index (FEI), however, declined marginally compared to the May round.
The CSS was conducted 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.
General Economic Situation
According to the RBI consumer confidence survey, 34.6 percent of those surveyed believe that the general economic situation has improved in the past year. This is higher than 31.9 percent in the May round, however, 42 percent believe that it has been worse.
As for the expectations of the coming year, less than half, that is 48.2 percent expect the economic conditions in India to improve, while the rest were either neutral (20.5%), or think it will worsen (27.7%) or believe that it will remain the same (24.1%).
40 percent of the participants said that their employment prospects have worsened but 49.1 percent expect it to improve in the coming year. This means that an aggregate of 50.9 percent have said that do not expect any change or expect employment prospects to deteriorate in the coming year.
A large 88.8 percent feel that the price level on purchases have increased and 83 percent expect this to increase further in the year ahead.
Rate of Change in Price Level (Inflation)
The people who expected an increase in price levels where further asked about their views on rate of change in the price (inflation). Out of the responses, 80.2 percent said that there has been an increase in inflation levels and 77.2 percent expect it to further increase in the coming year.
When asked about their expectations and perceptions about their income. Over half, that is 52.1 percent felt that their income remained the same, and 49.8 percent showed optimism towards increase in their income in the year ahead.
A large 83.9 percent said that their spending in the last year has been increased. This response is marginally higher than that in the May round. For the future ahead, 86.2 percent believe that their spending will increase compared to June.