New Delhi: Consumer confidence showed a gradual increase in January 2022, but remained in the pessimistic zone, a survey released by the Reserve Bank of India (RBI) showed on Thursday.
The gradual increase for the third consecutive survey round appeared behind the better sentiment in the general economic situation, household income and expenses.
The current situation index (CSI) showed positive sentiment by rising to 63.7 in January such as to 62.3 in November 2021.
The future expectation index (FEI) remained in the optimistic zone at 109.6 during the last survey.
This is mainly due to the surge in omicron cases throughout the country during the period considered.
The index value below 100 represents pessimism, while above 100 signal optimism.
“Households report a further increase in overall expenditures driven by higher essential expenditures; their sentiment on expenditure that is not important, however, remain calm,” said the survey.
Consumer confidence surveys are looking for qualitative responses from households regarding their sentiment in general economic situations, employment scenarios, price levels, household income and expenses.
It is done regularly in 13 major cities – Ahmedabad, Bengaluru, Bhopal, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Patna and Thiruvananthapuram.
It covers around 5,387 households in these cities.
Previously on that day, the RBI held its main loan interest rates by recording a low level for the 10th consecutive meeting to support a durable economic recovery from the Pandemic Covid-19.
The decision came a few days after Finance Minister Nirmala Sitharaman proposed to spend to support the recovery of the beating of the economic world.