Consumer confidence remained low in Nov: RBI survey

Consumer confidence remained very low in November 2020 compared to a year ago, as reflected in the Current Situation Index (CSI), as per Reserve Bank of India’s (RBI) Consumer Confidence Survey.

The weak confidence is attributable to consumer sentiments on the general economic situation, employment scenario, price levels and household incomes, according to the central bank.

The November 2020 CSI reading came in at 52.3 against 85.7 in November 2019.

The latest CSI reading, however, showed a marginal improvement over the all-time low of 49.9 recorded in the previous (September 2020) round.

Households remain optimistic of the situation one year ahead, with the Future Expectations Index (FEI) remaining in growth terrain at 115.9, against 114.5 in the November 2019 round.

The latest FEI reading is flat vis-a-vis the previous (September 2020) round.

Respondents reported higher essential and overall spending, though discretionary expenditure contracted; non-essential spending is expected to contract further in the coming year.