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Over 50% Indians feel Job Scene Getting Worse as Consumer Confidence Drops to 6-year Low, Says RBI Survey

Representative image.

Representative image.

According to the RBI data, Current Situation Index (CCI) dropped to 89.4 in September from 95.7 recorded in the July round of survey.

New Delhi: The Indian consumers' confidence in the overall economic situation and the employment scenario dropped to a six-year low in September, according to Reserve Bank of India (RBI)'s latest monetary policy.

Both the current situation index and the future expectations index recorded declines, the RBI said in its consumer sentiment survey report. The Current Situation Index (CCI) dropped to 89.4 in September from 95.7 recorded in the July round of survey, the RBI data, released on Friday, showed.

Of the total respondents, 47.9 per cent said the general economic situation had worsened and only 33.5 per cent thought the situation had improved. About 53 per cent expected the situation to improve in one year.

A total of 52.5% felt the employment situation had worsened and 33.4% said the situation would only get worse in the coming year.

“Respondents perceived an increase in the price level over the last one year and a majority of them expect prices to rise further in the coming year; as a result, sentiments on overall spending as well as essential spending remain strong, though sentiments on discretionary spending weakened,” said the survey.

The survey was conducted in 13 major cities, among 5,192 households.

On Friday, the RBI cut interest rates for the fifth time this year in an attempt to kickstart the slowing economy as it slashed the GDP growth projection for financial year 2019-20 to 6.1 per cent from the earlier forecast of 6.9 per cent.

RBI lowered its repo rate—the rate at which banks borrow from it—by 25 basis points to 5.15%. With this cut, the policy rates have come off by as much as 135 basis points so far this year to a nine-year low.

first published:October 06, 2019, 11:20 IST