RBI surveys show urban consumer confidence up, rural sentiment stays steady

NEW DELHI: India’s consumer confidence showed small but clear shifts in November, with urban families feeling a slight firming up of confidence and rural households holding steady. The Urban Consumer Confidence Survey and Rural Consumer Confidence Survey by the Reserve Bank of India (RBI), offered a broad picture of how people across the country viewed their economic situation.

Urban consumers felt a mild rise in confidence as the Current Situation Index moved up to 98.4 from 96.9. Survey responses showed that people felt a little better about prices and the general economic situation. It showed that things looked slightly improved compared to last year. The RBI also reported that the Future Expectations Index rose to 125.6, showing that people expected the coming year to be better. Even though some worries stayed, especially about jobs and spending, urban households saw slow but steady progress.

The survey noted that feelings about inflation became less negative. Respondents believed that price pressures might ease further over the next year. This played an important part in lifting confidence. Views on employment did not shift much from the previous round. People stayed hopeful about job prospects for the next year, even though their current view of employment remained almost unchanged. Income views stayed narrow, with a small rise in how families judged their present income.

Current spending fell, mainly because people reduced essential spending as price pressures eased. Future essential spending also softened, while non-essential spending expectations rose slightly. As a result, overall expected spending stayed stable. The data table in the survey showed how expectations perceptions for a year ahead on economic situation, price levels and confidence improved in November when compared to September.

In rural India, however, the confidence stayed close to what it had been in earlier rounds. The Current Situation Index held firm above the neutral mark for three straight rounds. Rural families did not feel a major shift in their day-to-day situation, though they stayed positive about areas like employment and spending. Their views on income and prices showed weaker perception, even as they believed inflation pressures were slowly easing.

The data showed slight movements in how rural households judged their present economic conditions. But the stronger story came from future expectations. Rural families expected better job opportunities and a softer price environment in the coming year. The Future Expectations Index reflected this with a small but clear rise. Inflation expectations dropped as more families believed price pressures would reduce. (ANI)