Consumer confidence plummeted in July 2020 with the present state of affairs index (CSI) recording its all-time low.
The present state of affairs index dropped to 53.eight in July from 63.7 in May, in accordance with the Reserve Bank of India’s Consumer Confidence Survey launched on Thursday.
The future expectations index (FEI) , nonetheless, charted again into the constructive territory indicating indicators of restoration for the yr forward.
“Consumer perception of the prevailing economic situation, employment scenario, and own income was significantly lower than that in May 2020. Respondents were, however, somewhat optimistic about these parameters for the coming year vis-a-vis the previous survey round,” the RBI survey mentioned.
Most respondents reported a discount in discretionary spending although their total spending elevated over the last one yr; they don’t anticipate to extend non-essential spending within the coming yr as properly.
In view of the Covid-19 pandemic, the survey was performed by way of telephonic interviews throughout July 1-12, 2020 in 13 main cities. Perceptions and expectations on normal financial state of affairs, employment state of affairs, total value state of affairs and personal revenue and spending have been obtained from 5,342 households throughout these cities.