RBI'S CONSUMER CONFIDENCE SURVEY 2020
9:24 AM
It is based on the premise that if consumers are optimistic,they will spend more and stimulate the economy but if they are pessimistic then their spending patterns could lead to a recession.
It is conducted by the Reserve Bank of India (RBI) I'm major cities of India over 5000 respondents.In view of the COVID- 19 pandemic ,the survey was conducted in digital media from 5 to 15 may 2020, in thirteen major cities .The survey measures customer perception (present and future) on five economic variables like economic situation, employment, price level, Income, and spending. The current situation index measures the change in customer perception over an economic issue in the last one year, while the future expectations index measures what consumer thinks about the same variables, in one year time.
The current situation touched a historic low of 63.7 in may 2020 round of survey , at against 85.6 in March this year .
The future expections index fell below 100 to 97.9 in may 2020,from 115.2 in March .
Result of the survey indicates further expended deceleration in consumption expenditure since households anticipating job losses and economic slowdown, will reduce their spending.
The households inflation expections survey release by the RBI also showed that families expect a sharp increase in inflation in the coming months on account of rising food prices. In this survey of professional forecasyers on macroeconomic indicators conducted in may show that real GDP is likely to conduct by 1.5% in 2020-21.
The survey show a mirror to the government the 20 lakh coror economic package announced has done a little to boost demand. The Covid-19 scenario has worsened the already problematic unemployment scenario. According to the centre monitoring indian economy, the unemployment rated spiked to about 23% in April and even higher to23. 48% in May.