RBI survey finds jobs biggest worry, economic sentiment of households in 'pessimistic zone'

In further proof to the sorry state of the economy, a series of surveys done by the Reserve Bank of India has shown a decline in consumer confidence and business sentiment giving rise to expectations of further fall in growth. The expectation for inflation trajectory also sees the number rising in the coming days. Household’s perception of economy has remained in the pessimistic zone for four successive quarters, and the outlook is further worsening, the RBI has said. The RBI’s Consumer Confidence Survey showed that the Current Situation Index (CSI) waned further into the pessimistic zone, reflecting deterioration in sentiments on the employment scenario, the price level and income. The same set of parameters caused the Future Expectations Index (FEI) to slip further in the September 2017 round relative to its reading in the June 2017. Households’ current perceptions on the general economic situation remained in the pessimistic zone for four successive quarters. [caption id=“attachment_2713908” align=“alignleft” width=“380”]  Representational image. Thinkstock[/caption] “The employment situation has been the biggest cause of worry for respondents, with sentiment plunging further into the pessimistic zone; the outlook on employment has also weakened in the last two round,” the RBI’s survey has said. Respondents’ pessimism on the price level also become accentuated in the recent period; however their outlook on inflation softened in the last two rounds. With 27 percent of respondents polling a fall in their current income, this overall sentiment moved into the pessimistic zone in the current round; the outlook on income, though optimistic, dipped further in relation to the June 2017 The survey was conducted in six metropolitan cities - Bengaluru; Chennai; Hyderabad; Kolkata; Mumbai; and New Delhi - and obtained 5,100 responses on households’ perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and their own income and spending.