RBI survey: Consumers expect rise in spending over one year

The Reserve Bank has released the results of May 2024 round of its bi-monthly consumer confidence survey (CCS). The survey collects current perceptions (vis-à-vis a year ago) and one year ahead expectations of households on general economic situation, employment scenario, overall price situation, own income and spending across 19 major cities. The latest round of the survey was conducted during May 2-11, 2024, covering 6,083 respondents. Female respondents accounted for 52.7 per cent of this sample.

Findings:

l Consumer confidence for the current period paused on its uptrend as sentiments on all parameters, except spending, recorded some moderations in the latest survey round; the current situation index (CSI)2 moderated to 97.1 in May 2024 from 98.5 two months ago.

l For the year ahead, consumer confidence remained at elevated level in the optimistic terrain though it declined, albeit marginally, due to relatively tempered sentiments on the general economic situation and employment prospects.

l The future expectations index (FEI) stood at 124.8 in May 2024 (125.2 in the previous survey round).

l Consumers expect higher rise in overall spending over the next one year vis-à-vis the previous survey round; more respondents expect an increase in both essential and non-essential spending.