CONSUMER CONFIDENC SURVEY

Subject: Important Surveys / Reports

Context: The latest Consumer Confidence Survey has shown that the Indian consumer sentiment has hit an all-time low.

Concept:

The RBI conducts this survey every couple of months by asking households in 13 major cities about their current perceptions and future expectations on a wide variety of economic variables.
Based on these specific responses, the RBI constructs two indices. One, the Current Situation Index (CSI) and two, Future Expectations Index (FEI).
The CSI maps how people view their current situation (on income, employment etc.) vis a vis a year ago.
The FEI maps how people expect the situation to be (on the same variables) a year from now.
CSI has fallen to an all-time low of 48.5 in May. The future expectations index (FEI) also moved to the pessimistic territory for the second time since the onset of the pandemic.