Consumer Confidence Survey (CCS) India

Consumer confidence falls in May 2019 on account of job worries.

Note: Consumer confidence survey was published quarterly by the Reserve Bank of India (RBI) before March 2016.

Published bi-monthly by the RBI. Updated to the month of May 2019 (published on June 6, 2019)

Recent Data Trend

According to the May'19 round of the Consumer Confidence Survey (CCS), the consumer confidence fell after gaining traction in the March'19 round of the CCS. The worsening of CCS is on account of deterioration in sentiments towards job situation and price level. 

The current situation index (CSI) went back to the pessimistic zone in May'19 by falling to 97.3 from 104.6 in March'19 round of CCS as Indians turned pessimistic about jobs and price level. The consumer sentiments turned negative for jobs and price level with a sign of deterioration compared to last month. The sentiment towards income, spending and economic situation also turned less optimistic but remained in positive territory. The sentiment regarding the future was depicted by the future expectations index (FEI) which slipped to 128.4 from its all-time high of 133.4 in the March'19 round.

The turning around of sentiments to pessimistic territory suggests waning consumer sentiments over general economic conditions prevailing in the economy. All this adds up to the challenge for policymakers who are trying to boost consumption and investment activity in the economy.

Brief Overview

Consumer confidence survey (CCS) has been conducted by the Reserve Bank of India (RBI) on a quarterly basis since June 2010 and on a bi-monthly basis since March 2016. The survey obtains information on urban consumer sentiments and captures qualitative responses on questions pertaining to economic conditions, household circumstances, income, spending, prices, etc. For each round of the survey, approx 5400 respondents (aged 21 years and above) are canvassed in six metropolitan cities of Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai. The responses are mostly in two parts- current situation as compared to a year ago and expectations a year ahead. Expectations on prices and consumer spending are in three forms: increased, remained the same and decreased or positive, neutral and negative.

To combine the consumer confidence responses on various parameters, two sub-indices are calculated by the RBI: Current Situation Index (CSI) that reflects the current situation as compared to one year ago and Future Expectation Index (FEI) that reflects expectations one year ahead. CSI and FEI are compiled on the basis of net responses on the economic situation, income, spending, employment and the price level for the current period and a year ahead, respectively. CSI/FEI = 100 + Average of Net Responses of the above parameters. CSI and FEI are compiled on the basis of net responses on the economic situation, income, spending, employment and the price level for the current period and a year ahead, respectively. CSI/FEI = 100 + Average of Net Responses of the above parameters. The CSI and the FEI can take values between 0 and 200. An index value over 100 implies that consumers are optimistic about the current/future situation and vice versa.

The responses to the main variables of the survey, viz, income, spending, employment, etc are recorded in terms of percentage. Percentage responses on income and spending are the respondents' own view, i.e, personal income and personal spending.

For more information, please visit the official government website.

Next Release Date:  August 7th, 2019