Consumer confidence dropped to a six-year bottom in September, the current Situation Index at 89.4

The survey asked consumers about financial status, employment, value level, income and expenses

New delhi date. 4 October 2019, Friday

The Reserve Bank of India (RBI) on Friday announced its monetary policy. The RBI monetary policy review report says that consumer confidence reached a six-year low in September 2019.

According to the report, the current Situation Index (Current Situation Index) has fallen to 89.4% in September, which is the worst in the last 6 years. The index had previously fallen to 88 in September 2013.

The RBI conducts a Consumer Confidence Survey once every quarter, asking about the economic status of about 5000 customers in several major cities. The survey asked consumers questions on five economic issues.

Questions on economic status, employment, value level, income and expenditure are asked. An index is created primarily in the Consumer Confidence Survey, based on current status and future expectations.

Current status rates are measured by the economic changes experienced by consumers over the past one year. In addition, consumers' opinion on economic conditions is taken over the next one year for future expectations.

The RBI's September survey revealed that consumers have expressed dissatisfaction over both the current situation and future expectations. Customers are optimistic when the current position rate is above 100 and below 100 is when customers are pessimistic.

The index dropped to 88 in September 2013. After the Modi government came, the confidence of consumers had increased rapidly. The current position index reached 103.1 till the September, 2014 survey, and the index remained above 100 by December, 2017. However, consumer confidence declined after the November 2016 blockade.

Consumers have been pessimistic for two to two and a half years since December, 2016. Until the 2019 election, consumers were pessimistic. A March, 2019 survey found that consumer expectations had risen to the current position index of 104.6 before the election.