The Reserve Bank of India has been conducting consumer confidence surveys since June 2010. The Survey assesses households’ sentiments about the economy from 13 cities -Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Ahmedabad, Bhopal, Guwahati, Jaipur, Lucknow, Patna and Thiruvananthapuram. Initially, the survey was conducted in six cities.
Objective of the survey is to estimate consumer’s Perceptions and Expectations on the General Economic Situation.
There are two sub-indices through which consumer confidence is measured from the survey:
(i) Current Situation Index (CSI) that summarizes the consumers’ current perception as compared to a year ago and
(ii) Future Expectations Index (FEI) – estimates economic situation one year ahead.
Both are based on:
(i) general economic situation,
(ii) the employment scenario,
(iii) the price level,
(iv) households’ income and
(v) spending.
In the context of the Covid, the consumer expectation index entered pessimistic ranges. As per the May 2020 round of the Consumer Confidence Survey (CCS), household income plunged deeper into contraction zone, whereas expectation on general economic situation and employment scenario for the year ahead were also pessimistic.
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