Mumbai: There are major changes in public sentiment since the August monetary policy meeting from the Bank of India’s reserve (RBI).
People are less pessimistic about economic conditions in all fields and optimism about expenses.
When it comes to expectations in the future, consumers are optimistic about the economy, work, income, and expenses.
However, they are still alert to prices a year from now.
“Consumers reflect lower pessimism in the applicable general economic situation, employment scenarios and household income and expenditure …,” According to the central bank’s central bank survey round 2021.
The results of the survey in terms of expectations in the future are one of the most optimistic At least with Covid-19 pandemics that accelerate the shadow of consumer confidence.
The current situation index is the highest since May 2020 and the highest future index since November 2020, survey data shows.
Since the removal of restrictions throughout the country after the impact of the second wave of pandemic, some indicators show strong recovery and indications is that the economy is expected to grow in two digits at 2021-22.
RBI estimates growth to around 9.5% in the current fiscal year and also expect inflation into the arrival of bumper plants.
However, he has underestimated the impact of crude oil prices hardening and domestic prices and the impact on prices.
Overall, the consumer confidence index increased to 57.7 in September from 48.6 in July.
Consumer confidence for the next one year period also increases.
The future expectation index moved to 107 in September from 104 in July.
The index value above 100 is a sign of optimism.
According to the survey, consumers show lower pessimism about the prevailing general economic situation, employment scenarios and household income & expenses.
The current situation index (CSI) for September increased compared to the previous survey round which was carried out after May 2020.
After the survey, there was further easing of restrictions with places of worship opened in Maharashtra.
There are also several rounds of fuel prices after the increase in global oil prices.
Future expectations are reflected in consumer confidence over the next year.
The future expectation index (Fei) increased further in September since July 2021, assisted by higher optimism in general economic situations and employment scenarios.
Households report an increase in overall expenditure, mostly caused by higher expenses in important items.
Pessimism about current and future discretion expenditure, reduced in the latest survey rounds.
In the August 2021 survey, sentiment has increased in connection with the economy and work.
Respondents are more pessimistic about prices and income while their expenditure plan remains unchanged.
Along with the monetary policy statement, RBI also released a monetary policy report published by the Central Bank department.
The report said that domestic economic activities were normalized after the momentum of the ferocious second wave.
“The prospect remains cloudy by the future pandemic path, the speed of vaccination and accelerated hidden requests provides reversed to the initial growth path.
Headline inflation has fallen back to tolerance and trajectories expected to be driven by the supply side factor,” said the report.
Manufacturing companies surveyed in July-September 2021 from the RBI industry prospect survey expect the cost of raw materials and selling prices to rise further at Q3FY22.
The service sector company also sees an increase in input costs and prices.
“Faster resolution of supply chain disorders, good food production and effective supply management can cause inflation underline the base line, depending on the evolution of the pandemic and the efficacy of the vaccine,” the report said.
Another indicator of the current change in the situation was that the RBI managed to conduct a consumer confidence survey (CCS) for September 2021 through a physical interview in 13 major cities from 5,237 households while the previous survey was carried out by telephone.
The survey was conducted after several cities loosened covid restrictions.
In Mumbai, the train and local mall opened for public members who were fully vaccinated.