Consumer sentiment at 5 year low, says RBI survey

According to the latest consumer confidence survey released by Reserve Bank of India, the current situation index fell to 85.7 in November from 89.4 in September, its steep decline since 2014

Consumer sentiment at 5 year low, says RBI survey
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NH Web Desk

Another worrying sign of worsening economic situation in the country has emerged as per the RBI data. The consumer confidence across India has declined to a five-year low. According to the latest consumer confidence survey released by Reserve Bank of India, the current situation index fell to 85.7 in November from 89.4 in September, its steep decline since 2014.

Its is important to mention here that in the consumer confidence index, 100 is the dividing line between pessimism and optimism.

Future expectations index (FEI) has also fallen to 114.5, down from 118 in September 2019, indicating that while consumer sentiments have dipped, the year ahead expectations are still on the optimistic terrain.

In the general economic situation and employment scenarios, the consumer has weakend, but on the other hand their one-year ahead expectations are in the optimistic range for all parameters, except prices; expectations on income one-year ahead improved marginally over the previous survey round," the RBI survey stated.

While most respondents thought prices as having increased during the last one year, they also expected prices to rise further in the coming year. Consequently, household sentiments on overall spending has remained resilient.


Reserve Bank of India survey, which studies the perceptions and expectations on the general economic situation, employment scenario, overall price situation and own income and spending, was obtained from 5,334 households across 13 major cities in India.

In November 2019, expenditure survey conducted by the National Statistical Office (NSO) that consumer spending in India has fell for the first time in more than four decades in 2017-18. The data is yet to be made official.

However, the government soon released a clarification saying the NSO report was held back from official release due to ‘data quality issues’.

India's GDP growth rate in July-September slowed to a six-year low of 4.5 per cent on a slump in manufacturing and drop in consumer demand.

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