Consumers' sentiments on current economic conditions have worsened since March 2018, as around 48 percent of all households polled by the Reserve Bank of India (RBI) believe the situation in May has deteriorated. However, expectations for the following year improved.
The level of consumer confidence, nationwide, in May 2018 was almost similar to that in March 2018, according to the central bank survey. The RBI's current situation index (CSI) slid down by one point into the pessimistic zone. But, the future expectations index (FEI) showed a marginal uptick, data showed.
The RBI's May 2018 Consumer Confidence Survey (CCS), conducted in six cities including Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi, also revealed that while households remained pessimistic about the current employment situation, their sentiments were marginally better for the future.
"Prices continued to remain a concern for households, and their outlook for the next year was largely unchanged. Respondents’ perceptions regarding their current income turned positive with an improvement of around five percentage points, and the outlook for one year ahead also improved by a similar magnitude," the survey said.
But the GICI presents a pretty picture
Separately, the Genesis India Consumer Indicator (GICI) -- a monthly indicator tracking consumer sentiment pan India across personal finances, business conditions and buying conditions -- increased slightly to 60.45 in May from 59.04 in April, reported the PTI.
Consumer sentiment in India regarding personal finances, business and buying conditions increased in May, largely driven by the positive economic data seen in recent months, said the report. The GICI index is compiled by Genesis Management and Market Research (GMMR).
The GICI survey further noted that respondents' views on current business conditions increased significantly for the second consecutive month to 38.41 from 33.87. Moreover, consumers were also more upbeat about their current household finances with the indicator increasing to 54.09 in May from 50.66 in April.
Repo rate revision
The RBI on Wednesday hiked the repo rate for the first time in over four years -- by 0.25 percent -- to curb inflationary pressures from high crude oil prices, a move that will translate into higher EMIs for home, auto and other loans.
With all its members voting for the increasing, the six-member Monetary Policy Committee (MPC) surprised the markets by raising the repo rate, or the rate at which the central bank lends to other banks -- to 6.25 percent but kept its policy stance as "neutral".
According to government data, the Indian economy grew 7.7 percent in the January-March quarter of 2018, the biggest expansion in seven quarters, aided by a robust performance in the manufacturing, construction and service sectors, alongside good farm output.
With inputs from PTI
Updated Date: Jun 08, 2018 17:56 PM