Consumer Confidence Survey

12.12.2024

Consumer Confidence Survey

Why in the news?                        

           According to the latest Consumer Confidence Survey of the Reserve Bank of India (RBI)Indian consumers’ confidence about the general economic situation, employment scenario, their income and spending have weakened.

About Consumer Confidence Survey (CCS):

• It is a survey that indicates how optimistic or pessimistic consumers are regarding their expected financial situation.
• If the consumers are optimistic, spending will be more, whereas if they are not so confident, then their poor consumption pattern may lead to recession
• It is released by the Reserve Bank of India bi-monthly.
• Indicators of consumer confidence survey:

○Current Situation Index (CSI)

○Future Expectation Index (FEI)

Highlights of the Consumer Confidence Survey:

• Households displayed somewhat higher optimism on one year ahead outlook for major economic parameters, except prices.
• The future expectations index (FEI) improved by 0.5 points to 121.9 in the latest survey.
• The CCS survey showed that households anticipated higher spending over one year horizon on the back of higher essential as well as non-essential spending
• Consumer confidence for the current period declined marginally owing to weaker sentiments across the survey parameters except household spending.
• The current situation index (CSI) moderated by 0.7 points to 94 in November 2024 from 94.7 in September 2024.

                                                                         Source: Indian Express

Consider the following statements regarding the Consumer Confidence Survey:

1)It is released by the Reserve Bank of India annually.

2)It is a survey that indicates how optimistic or pessimistic consumers are regarding their expected financial situation.

3)The future expectations index (FEI) improved by 1.9 points to 121.9 in the latest survey.

How many of the statements given above are correct?

A.Only one

B.Only two

C.All three

D.None

Answer A