Consumer optimism reaches a 4-year high in September

 Consumer optimism reaches a 4-year high in September

In New Delhi: After a short lull in July, consumer confidence reached a four-year high in September, the Reserve Bank of India (RBI) said.

"The current situation index (CSI) hit a four-year high in September 2023 as a result of respondents' stronger assessments of the present state of the overall economy and job circumstances. The RBI's bimonthly consumer confidence survey (CCS), which was issued on Friday, said that households "remain exceptionally confident on future profits even though their sentiment on current earnings maintained around its July 2023 level." CSI reached 92.2 throughout the month.

The twice-monthly study measures consumers' perceptions of the present state of the economy, job prospects, general pricing trends, and their individual income and expenditure. On the same principles, it also monitors households' expectations for the next year.

From September 2 to September 11, 6,077 individuals from 19 major cities participated in the RBI poll. 50.3% of the responders in this sample were female.

The survey's results are released just before the holiday season, when households normally spend more money, is starting. Consumer impression of recent purchases, however, decreased somewhat in September as compared to July. The majority of other factors, including the economy, employment, and price levels, saw an improvement from the previous round but remained negative.

The most recent survey round also saw a four-year high for the future expectations index (FEI), according to the report.

The report is released while global prices for food and energy remain high. In fact, the RBI reported that compared to a year earlier, respondents were less pessimistic about current price levels and inflation. Although respondents' pessimism on pricing forecasts for the next year hasn't changed, it has in the most recent poll round.

The RBI's Monetary Policy Committee (MPC) unanimously resolved on Friday to maintain the repo rate at 6.5 percent. According to RBI governor Shaktikanta Das, "the Indian economy is advancing in a difficult global environment, drawing strength from its underlying macroeconomic fundamentals and buffers." There is no space for complacency, the central bank underlined. "The inflation prognosis is unpredictable due to fluctuating energy and food costs in the wake of persistent geopolitical tensions and unfavorable weather conditions. We continue to monitor the changing dynamics of inflation, added Das.