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The consumer confidence index (CCI), based on current perception compared with one year ago, for September 2021 improved to 57.7 vis-a-vis 48.6 in July 2021, as per Reserve Bank of India’s Consumer Confidence Survey.
This reflects lower pessimism of consumers on the prevailing general economic situation, employment scenario as well as household income and expenditure, RBI said.
The CCI, based on expectations for one year ahead compared with current situation, has risen to 107 in the, September 2021 survey roundvis-a-vis 104 in July 2021.
The CCI, based on current perception compared with one-year ago, is also referred to as the Current Situation Index (CSI). The CCI, based on one year ahead expectations compared with current situation, is also known as Future Expectations Index (FEI).
Five variables
CSI and FEI comprise of five main variables -- economic situation, employment, price level, income and spending.
Households reported a rise in overall expenditure, largely due to higher expenditure on essential items, according to the survey .
When it comes to current perception regarding the general economic situation (GES), 72.3 per cent of the respondents said it has worsened in the current round of survey versus 78.5 per cent in the preceding (July) survey. RBI said this reflects lower pessimism on the prevailing GES.
As per the survey, 12.9 per cent of the respondents said their current perception of the GES remains the same against 12.1 per cent in the last survey.
Further, 14.9 per cent of the respondents said their current perception of the GES has improved against 9.4 per cent in the last survey.
When it comes to one year ahead expectation regarding the GES, 40.1 per cent of the respondents said it will worsen in the current round of survey versus 44.5 per cent in the preceding survey.
Per the survey, 18.3 per cent of the respondents said their one year ahead expectation of the GES will remain the same against 15.8 per cent in the last survey.
Further, 41.6 per cent of the respondents said their one year ahead expectation of the GES has improved against 39.7 per cent in the last survey.
Household spending
When it comes to current perception of households regarding spending, 58.1 per cent of the respondents said it has increased in the current round of survey versus 51.9 per cent in the preceding survey.
As per the survey, 25.7 per cent of the respondents said their current perception of spending remains the same against 27.7 per cent in the last survey.
Further, 16.2 per cent of the respondents said their current perception of spending has decreased against 20.5 per cent in the last survey.
Also read: Unlike manufacturing, services PMI drops to 55.2 in September
When it comes to one year ahead expectation of households regarding spending, 65.7 per cent of the respondents said it will increase in the current round of survey versus 62.1 per cent in the preceding survey.
As per the survey, 27.5 per cent of the respondents said their one year ahead expectation of spending will remain the same against 28.7 per cent in the last survey.
Further, 6.9 per cent of the respondents said their one year ahead expectation of spending will decrease against 9.3 per cent in the last survey.
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