Mumbai: More than half of urban households in India say their economic situation has deteriorated over the past year, according to the Reserve Bank of India’s latest survey. The central bank said concerns over employment and rising prices have weighed on public sentiment.
The findings come from the RBI’s Urban Consumer Confidence Survey, conducted last month among 6,054 respondents across 19 major cities. The RBI released the results recently.
Overall, 54.5% of respondents said the country’s economic conditions have worsened. This share was 50.5% in July and 40.9% in September last year. Meanwhile, 25.3% reported an improvement, down from 27.1% in July.
The Current Situation Index (CSI), which reflects present economic sentiment, slipped to 87.9 from 88.3 in July. Looking ahead, 38.3% said they expect conditions to worsen further over the next year, pulling the Future Expectations Index down to 113.5 from 115.3.
The survey also indicated that higher prices for essentials such as food and fuel have increased spending on necessities, prompting urban consumers to cut back on discretionary and luxury purchases. Respondents continued to flag employment and inflation as key concerns.
