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RBI survey: Consumer confidence on jobs, economic situation deteriorates

Consumer Confidence Indices
By Rajiv Shah 
Results of the Consumer Confidence Survey (CCS), carried out by the Reserve Bank of India (RBI) for November 2018, suggest that growing pessimism on general economic situation and employment scenario. Conducted in 13 major cities – Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Patna and Thiruvananthapuram - RBI said, "Future expectations index (FEI) also moderated due to lower optimism on the employment scenario and household spending."
Based on 5,326 responses on households’ perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and their own income and spending, the survey results show, to quote RBI, that the current situation index (CSI) "declined further in November 2018 in a phase that commenced in November 2016, on the back of growing pessimism on the general economic situation and the employment scenario as also some cutback in spending."
RBI further said, "Current sentiment on the general economic situation dipped further into the pessimistic zone, while the outlook for the year ahead was broadly unchanged from the previous round of the survey." It added, "Sentiment on the employment scenario also deteriorated for the current period and for the one year ahead horizon."
According to RBI, "Notwithstanding a marginal improvement in sentiment, consumers remained pessimistic about the price situation... In contrast, respondents’ assessment on the income situation for the current year improved, and they also expressed optimism about their income one year ahead... There was moderation in sentiment on households’ spending with cutbacks expected in expenditure on non-essential items."

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