Consumer Confidence Index 2020 | UPSC

• Consumer confidence remained at an all-time low level in September.
• The general economic situation had been worsening during the month.
• However, the situation is set to improve in the next 12 months, the survey said.

• The index has improved from 105.4 to 115.9 on a one-year ahead expectations basis.
• This is indicating a recovery in the consumer confidence level over the next 12 months.
• On the inflation RBI survey said households’ median inflation expectations remained elevated.

CREDITS : RBI 

CALCULATION

• The current situation index (CSI) recorded its third successive all-time low.

• As the respondents perceived further worsening in general economic situation and employment scenario during the last one year.
• Households were, however, more confident for the year ahead.

FUTURE EXPECTATIONS INDEX (FEI)

• The CCI reflects consumers’ short-term—that is, six-month—outlook for, and sentiment about, the performance of the overall economy as it effects them.

• It deals with six-month outlooks for business, employment, and income.

CURRENT SITUATION INDEX

• The Present or Current Situation Index is an indicator of consumer sentiment about current business and job market conditions.

• Businesses, investors, and economic policymakers watch the Present Situation Index along with related indicators.
• This will help gauge near-term consumer demand.

• Overall financial situation was assessed to have improved.
• Respondents maintained negative sentiments on selling prices and profit margins in Q2 of 2020-21, though pessimism moderated.

• It is expected to recover next year, when it is expected to grow by 8.2 per cent.
• Real private final consumption expenditure (PFCE) is assessed to contract by 11.0 per cent during 2020-21.
• Real gross fixed capital formation (GFCF) is projected to record a large decline of 21.0 per cent in 2020-21.

SURVEY AND RESPONSES

• As per CSS, 74.4 per cent of the respondents felt that the current perception on the general economic has worsened.
• 11.2 per cent (19.3 per cent) said it has remained same
• 14.4 per cent (28.4 per cent) said it has improved.

EMPLOYMENT

• 67.4 per cent (55.7 per cent) of the respondents felt that the current perception on employment has worsened.
• 13.4 per cent (19.1 per cent) said it has remained same.
• 19.2 per cent (25.2 per cent) said it has improved.

INCOME

• 53.4 per cent (24.9 per cent) of the respondents felt that the current perception on income has decreased.
• 34 per cent (52.4 per cent) said it has remained same
• 12.6 per cent (22.7 per cent) said it has increased.

SPENDING

• 56.1 per cent (72.6 per cent) of the respondents felt that the current perception on spending has increased
• 31 per cent (24 per cent) said it has remained same
• 12.9 per cent (3.4 per cent) said it has decreased.

PRICE LEVEL

• 79.1 per cent (87.2 per cent) of the respondents opined that the current perception on price level has increased
• 17.5 per cent (10.3 per cent) said it has remained same
• 3.4 per cent (2.6 per cent) said it has decreased.