The findings of RBI’s latest consumer surveys offer some insights to the general economic situation. According to this, consumers expect improvements in the general economic situation, employment conditions and income scenario during the coming year. The discretionary spending, however, is expected to remain low in the near future, the survey said.
The RBI conducted the last round of consumer confidence surveys during August 29 – September 10 in thirteen major cities. The survey assessed perceptions and expectations on general economic situation, employment scenario, overall price situation and own income and spending from 5,364 households across these cities.
According to the survey findings, more respondents reported curtailment in both overall and essential spending during the past one year, when compared with the last survey round. Households were, however, more confident for the year ahead, the survey showed.
The current situation index (CSI) recorded its third successive all-time low, as the respondents perceived further worsening in the general economic situation and employment scenario during the last one year.
Similarly, the industrial outlook survey, conducted during July-September, showed manufacturers expect further improvements in production, capacity utilisation and order books in Q3 of the ongoing fiscal year, the RBI said.
Going forward, respondents polled expect some recovery in the external demand situation and job landscape. “Overall financial situation and availability of finance portrayed optimism,” said the survey.
As for Q2 (July-September quarter), manufacturing companies assessed upturn in production, capacity utilisation and order books during Q2 from the unprecedented contraction in the previous quarter. In all, 959 companies responded in this round of the survey, the RBI said.
The RBI is on a wait and watch mode as far as its monetary policy approach is concerned. In the latest round of monetary