The Consumer Confidence Survey provides an assessment of respondents’ perception spread across six metropolitan cities viz., Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi. The survey captures qualitative information from respondents about their perceptions on general economic conditions and own financial situation on a 3-point scale viz., improve, remain same or worsen. The assessments are analysed in two parts - current situation as compared with a year ago and expectations for a year ahead. This article provides the salient findings of the survey, conducted during the first week of December 2014 based on the response of around 5,400 respondents.

Highlights:

I. The current round of the Consumer Confidence Survey reflects continuation of positivism in consumer confidence as the Current Situation Index (CSI) remains at the same level as that in September 2014. The Future Expectations Index (FEI) has remained robust between 122 and123 since June 2014. However, expectations regarding future economic conditions, future household circumstances, future income and future spending have declined during December 2014 round of survey. Improvement in the perceptions on price expectations contributed in maintaining FEI at the same levels.

II. The expectations regarding improvement in future economic conditions have been gradually declining over the last three quarterly rounds of the survey. However, the respondents reported marginal improvement in current economic conditions as compared to one year ago (Table 1).

III. Positive perceptions on future household circumstances have been witnessing a gradual fall over the last three quarterly rounds of the survey. Salary and business income as well as prices are the dominating factors in influencing views on household circumstances (Tables 2 and 3).

IV. The rising trend in positive perceptions regarding income observed in latest few quarters appears to be on the wane. The outlook as well as current situation, as compared to 1-year ago, have recorded significant fall in December 2014 (Table 4).

V. The net responses on current spending continued to remain above 70 per cent. As regards future spending, nearly 70 per cent respondents expect either increase or no change. Cost of consumer goods and services remain the major factors that influenced the spending perceptions (Tables 5 and 6).

VI. As regards perceptions on major expenses, around 60 per cent of respondents reported no major expenditure outlays for purchase of house or gold during December 2014 round of survey (Table 7).

VII. Employment outlook remains consistently stronger with more than 60 per cent of respondents expecting improvement in employment situation during the latest three quarterly rounds of the survey (Table 8).

VIII. As regards price levels and inflation, current sentiments as well as future expectations show improvement in this round of the survey (Tables 9 and 10).

¹The September 2014 round of the survey data was published on September 30, 2014 on RBI website. The survey results are based on views of the respondents which are not necessarily shared by the Reserve Bank of India.