<p>A survey of nearly 5,500 households in 13 cities, including Bengaluru, by the Reserve Bank of India conducted at a time when cities are beginning to recover from the Covid-19 impact, has found consumer confidence in the economy to be abysmally low at 52.3 in November and their discretionary expenditure contracting.</p>.<p>Although consumer confidence towards the general economic situation, price levels, household incomes and employment scenario has marginally inched up in November from an all-time-low of nearly 50 in September, it is way below the one-year-ago level in the same month (November).</p>.<p>A reading below 100 indicates pessimism, according to the survey scale of the central bank.</p>.<p>The survey, conducted between October 30 and November 12, found respondents’ discretionary expenditure contracted over 11% in November and the outlook for the coming months was not encouraging either. </p>.<p>However, households sounded optimistic about the situation one year ahead, according to the consumer confidence survey.</p>.<p>On the price situation, another survey of nearly 6,000 households in 18 major cities showed a majority of households expect prices of goods and services to rise in the next three months from where they are at present. They were also pessimistic about the one-year ahead period. The respondents were also worried about food prices rising further. </p>.<p>The RBI too has sounded a note of caution on the inflation scenario in the coming months although it has upgraded its GDP forecast for the current year to a contraction of 7.5% from an earlier estimate of a 9.5% decline. </p>.<p>In line with that, another set of the RBI’s professional forecasters’ survey too has revised the forecast for real gross domestic product (GDP) growth upwards for the financial year 2020-21 to a contraction of 8.5% from the previous round’s estimate of 9.1%.</p>.<p>It has projected merchandise exports to decline by 11.3% and imports to contract by 23.2% in the financial year 2020-21.</p>
<p>A survey of nearly 5,500 households in 13 cities, including Bengaluru, by the Reserve Bank of India conducted at a time when cities are beginning to recover from the Covid-19 impact, has found consumer confidence in the economy to be abysmally low at 52.3 in November and their discretionary expenditure contracting.</p>.<p>Although consumer confidence towards the general economic situation, price levels, household incomes and employment scenario has marginally inched up in November from an all-time-low of nearly 50 in September, it is way below the one-year-ago level in the same month (November).</p>.<p>A reading below 100 indicates pessimism, according to the survey scale of the central bank.</p>.<p>The survey, conducted between October 30 and November 12, found respondents’ discretionary expenditure contracted over 11% in November and the outlook for the coming months was not encouraging either. </p>.<p>However, households sounded optimistic about the situation one year ahead, according to the consumer confidence survey.</p>.<p>On the price situation, another survey of nearly 6,000 households in 18 major cities showed a majority of households expect prices of goods and services to rise in the next three months from where they are at present. They were also pessimistic about the one-year ahead period. The respondents were also worried about food prices rising further. </p>.<p>The RBI too has sounded a note of caution on the inflation scenario in the coming months although it has upgraded its GDP forecast for the current year to a contraction of 7.5% from an earlier estimate of a 9.5% decline. </p>.<p>In line with that, another set of the RBI’s professional forecasters’ survey too has revised the forecast for real gross domestic product (GDP) growth upwards for the financial year 2020-21 to a contraction of 8.5% from the previous round’s estimate of 9.1%.</p>.<p>It has projected merchandise exports to decline by 11.3% and imports to contract by 23.2% in the financial year 2020-21.</p>
