Consumer confidence dips, shows latest RBI survey

Consumer confidence weakened further on the back of deteriorating sentiments on the general economic situation, income and prices, the latest survey from the Reserve Bank of India (RBI) showed.

Respondents expressed lower optimism for the year ahead, which was reflected in the future expectations index.

One-year ahead sentiments on all major parameters except prices, however, remained in positive terrain, the RBI survey in the March round showed.

On April 7, the RBI released the results of the March 2021 round of its Consumer Confidence Survey. The survey was conducted through field interviews during February 27 to March 08, 2021, in 13 major cities.

Perceptions and expectations on the general economic situation, employment scenario, overall price situation and own income and spending have been obtained from 5,372 households across these cities during these surveys, the RBI said.

With higher essential spending vis-a-vis a year ago, most consumers reported higher overall expenditure, which is expected to increase further in the coming year despite continuing moderation in discretionary spending, the RBI said.

Consumer confidence had taken a severe hit due to COVID-19 as people postponed discretionary spending. This, in turn, impacted the demand for bank loans and business performance across sectors.