Consumer confidence hits new low, says RBI survey
82% of respondents really feel job scenario has worsened within the aftermath of the pandemic
Devastated by the second wave of COVID-19, customers’ confidence has dipped to a new low within the nation and 81.4% of respondents have stated that the final financial scenario has ‘worsened’, stated a new survey by the Reserve Bank of India.
As the pandemic continued to adversely hit lives and companies throughout the nation, 82.1% of the respondents stated the employment scenario has ‘worsened.’
The RBI launched the outcomes of the May 2021 spherical of its Consumer Confidence Survey to grasp perceptions and expectations on common financial scenario, employment state of affairs, and general worth scenario by conducting telephonic interviews with 5,258 households throughout 13 main cities, together with Bengaluru, from April 29 to May 10.
Respondents have been additionally bleak of their view of the year-ahead prospects, with 51.5% saying the final financial scenario would “worsen”, whereas solely 33.2% predicted the scenario will enhance. As many as 15.3% stated the scenario would stay the identical.
“The future expectations index moved to pessimistic territory for the second time since the onset of the pandemic; this was driven by sharp fall in expectations on general economic situation, employment scenario and household income over a one-year horizon,” the RBI stated.
In one-year-ahead prospects on employment state of affairs, 35.4% of respondents stated the scenario would enhance, 16.1% stated the scenario would stay the identical. However, a majority of respondents (48.5%) stated the employment scenario “will worsen,”
About the value degree, an amazing response (90.6%) was that costs have elevated. On one-year forward expectations, 73.9% respondents stated costs would enhance, the survey stated.
In a separate inflation expectations survey of households by the RBI, 60% of respondents stated they predict increased inflation over the subsequent three months and over the subsequent one yr.
On the revenue state of affairs, 58.5% of respondents stated their incomes had decreased and 42.5% stated their revenue will enhance within the subsequent one yr. About 42% stated their revenue will stay the identical.
On spending, 50.6% stated their spending has elevated and it was largely on important objects (63.2%). Household spending was diminished largely owing to customers’ concern in regards to the financial scenario and job prospects, the RBI stated.