The Indian consumers’ confidence in the economy and employment status in the country dropped to a six-year low in September, according to the Reserve Bank of India’s latest monetary policy.
The current situation index was down to 89.4 in September from 95.7 recorded in the July survey, while the future confidence index also recorded a decline, according to the RBI’s consumer sentiment survey report.
Around 47.9 percent of the survey respondents opined that the general economic situation in the country has worsened while just over a third (33.5 percent) felt that the situation has improved. Over half the respondents (53 percent) believed conditions will improve in the next one year.
On employment, more than half the respondents (52.5 percent) believed the job market has worsened and 33.4 percent feel the situation will only get worse in the next one 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,” the survey said.
Thirteen major cities and 5,192 households were part of the survey.
The RBI's Monetary Policy Committee in its fourth bi-monthly meeting on Friday reduced the repo rate by 25 basis points to 5.15 percent. The central bank has also lowered the growth forecast for the fiscal year 2019-20.
RBI governor Shaktikanta Das said the central bank will maintain its current "accommodative" policy stance "as long as it is necessary" to revive growth.
First Published: IST