Reserve Bank of India's latest consumer confidence survey shows improved sentiment about the general economic scenario for the current period as well as for the year ahead.
However, despite an improvement, and the fact that overall consumer confidence has been moving in an upward trajectory, the current perception of consumers still remains in the pessimistic zone. Future expectations of consumers, meanwhile, has seen a sharp improvement and is in the optimistic zone.
"Consumers’ sentiment on current expenses witnessed some moderation but their expectations
on overall spending improved marginally for both essential and non-essential items", the survey said.
52.1% of the respondents' perception of the current general economic situation has worsened but 50.2% expect it will improve in the year ahead. For employment as well, 49.9% feel the situation has worsened, but 51.8% expect the employement scenario to improve in the year ahead.
The consumer confidence survey assesses consumers’ sentiment about the general economic situation, employment scenario and their own spending and savings capability. An index value below 100 shows pessimism, while a value that's above 100 reflects optimism.
Consumer confidence has been on the rise ever since it hit rock bottom in mid-2021, amid the pandemic.