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Recovery In Consumer Confidence In July: RBI Survey

The month of July recorded a rise of 1.4 per cent from 75.9 in May to 77.3, in the current situation index (CSI).

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The Consumer Confidence Survey by the Reserve Bank of India (RBI) revealed how the confidence of consumers recovered in the month of July, while still remaining in the pessimistic zone. In the same month, the previous year, consumer confidence had recorded an all-time low, due to the weakening of the perceptions of the general economic situation and employment.


The month of July recorded a rise of 1.4 per cent from 75.9 in May to 77.3, in the current situation index (CSI). The major reasons attributed to this growth was a perception improvement in employment, household income, and spending, as per the survey. Simultaneously the future expectations index (FEI) clocked a marginal improvement from 113 in May to 113.3 in July. The reason attributed to this was the optimism expressed by the consumers on the outlook for the economic situation and their overall spending over the next year.


The survey stated, "Consumers’ perception of the prevailing price level as well as inflation declined from that in the previous round of the survey; they expect a further rise in prices, but inflation is expected to moderate marginally over the next one year."


The participating households of the survey reported a slight rise in their current spending. They predicted for the pattern to continue till the next year. This survey gathers information based on the qualitative responses regarding views on general economic situation, employment scenario, price level, households' income and spending.


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