Consumers anticipate higher spending over the coming year: RBI survey
According to the latest consumer survey conducted by the Reserve Bank of India, Indians are expecting to spend more on both essential and non-essential items in the next twelve months. While consumer sentiment regarding the current economic situation saw a slight moderation compared to the previous survey, expectations for the future remain positive.
The survey found that the index measuring consumer opinion about current economic conditions dipped to 97.1 in May 2024, after being at 98.5 two months prior. At the same time, the index reflecting future expectations stayed high at 124.8, only marginally lower than 125.2 in the earlier survey round. These indexes are compiled based on responses on various economic factors like income, employment, prices and spending for both the present and the year ahead.
The survey involved over six thousand respondents who were interviewed between May 2nd and 11th of this year. It highlighted that while confidence for the current period saw a pause in its upward trend, sentiments for the coming year remained optimistic. Consumers foresee a strengthening economy and job market in the future along with continued rise in their purchasing power.
In a separate household survey by the central bank, inflation expectations for the short as well as long term climbed further. At the same time, perceived current inflation cooled slightly. Increased cost was anticipated across major product categories over the next three months and one year periods. Female respondents displayed somewhat lower inflation views than males on average. This poll gathered views from nearly six thousand urban households between the same dates in May.
