Consumer confidence in India is at its highest level since mid-2019, according to a recent Reserve Bank of India (RBI) survey.

More on the news:

  • The survey included over 6,000 respondents, with females making up 50.8 percent of the sample.
  • Current Situation Index (CSI) increased by 3.4 points to 98.5, indicating improved perceptions across all survey parameters.
  • Future Expectations Index (FEI) rose to 125.2, its highest level since mid-2019, reflecting heightened optimism for the upcoming 12 months.
  • This suggests that Indian households are feeling more optimistic about the economy, potentially leading to increased spending. 
  • There are also bright prospects for investment activity, due to factors like a rise in manufacturing capacity utilization.
  • The RBI decided to maintain the Repo Rate unchanged at 6.5 percent in its recent meeting.

About Consumer Confidence Survey (CCS) 

  • It is a tool used to gauge consumer sentiment about the current and future state of the economy. It’s typically conducted by a government agency or research institution.
  • It seeks qualitative responses from households, regarding their sentiments on general economic situation, employment scenario, price level, households’ income and spending. It is conducted regularly in 19 cities.
  • Purpose: Measures consumer’s feelings about the economy, impacting their spending habits and overall economic activity.
  • Conducted by: In India, the Reserve Bank of India (RBI) conducts the CCS.

Methodology: Surveys households, gathering their perceptions (compared to a previous period) and expectations (for the future) on various factors like:

  • General economic situation
  • Employment scenario
  • Overall price situation
  • Own income and spending
  • Analysis of CCS results:

Consumer Confidence Surveys (CCS) use two key indexes:

  • Current Situation Index (CSI): Measures consumer perception of the current economic situation compared to a past period (e.g., 6 months). A score above 100 indicates optimism, below 100 suggests pessimism.
  • Future Expectations Index (FEI):  Gauges consumer outlook for the next year (typically). Similar calculation to CSI, but focused on future expectations. A high FEI suggests optimism about the coming year, a low FEI indicates pessimism. 


  • Policymakers: Use CCS data to make informed decisions about economic policies like interest rates and government spending.
  • Businesses: Use CCS data to understand consumer behavior and adjust their strategies accordingly (e.g., production levels, marketing campaigns).

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