RBI Monetary Policy Committee: Consumer confidence in India surges to highest level since mid-2019: RBI survey

2024-04-05 13:48:15

Consumer confidence in India has soared to its highest level since mid-2019, as per a recent bi-monthly survey conducted by the Reserve Bank of India (RBI) from March 2 to March 11, 2024. The survey, which included 6,083 respondents, with females comprising 50.8 percent of the sample, revealed a significant uptick in consumer sentiment.

Current Situation Index (CSI) Hits 98.5

The survey indicated that respondents perceived improvement across all survey parameters, leading to a 3.4-point increase in the Current Situation Index (CSI) to 98.5 – its highest level since mid-2019.Future Expectations Index (FEI) Reaches 125.2
Similarly, the ‘future expectations index’, which assesses consumer sentiment for the upcoming 12 months, also climbed to its highest level since mid-2019, reaching 125.2. This increase was fueled by heightened optimism in all Consumer Confidence Survey (CCS) parameters.

Bright Prospects for Investment Activity
Governor Shaktikanta Das highlighted the bright prospects for investment activity, citing factors such as the upturn in the private capex cycle, robust government capital expenditure, healthy balance sheets of banks and corporates, and rising capacity utilization. Capacity utilization in the manufacturing sector rose to 74.7% in October-December 2023 from 74% in the previous quarter.

In its recent meeting, the RBI Monetary Policy Committee (MPC) decided to maintain the repo rate at 6.5 percent.

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