Consumers expect improvements in the general economic situation, employment conditions and income scenario during the coming year. However, discretionary spending is expected to remain low in the near future, according to the results of the September 2020 round of its Consumer Confidence Survey, released by the Reserve Bank on Saturday.
In view of the COVID-19 pandemic, the survey was conducted through telephonic interviews during August 29 – September 10, 2020 in thirteen major cities — Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Patna, and Thiruvananthapuram.
Perceptions and expectations on general economic situation, employment scenario, overall price situation and own income and spending were obtained from 5,364 households across these cities.
The current situation index (CSI) 3 recorded its third successive all-time low, as the respondents perceived further worsening in general economic situation and employment scenario during the last one year. Households were more confident for the year ahead: the future expectations index (FEI) improved for the second successive survey round. More respondents reported curtailment in both overall and essential spending during the past one year, when compared with the last survey. Consumers expect improvements in general economic situation, employment condition and income scenario during the coming year; discretionary spending, however, is expected to remain low in the near future.