WHAT?

Consumer confidence is an economic indicator that gauges how optimistic or pessimistic consumers feel about the economy and their personal financial situation. RBI's Consumer Confidence Survey (CCS) is conducted bi-monthly. RBI’s CCS assesses perceptions and outlook on key economic parameters such as the general economic situation, employment, income, prices, and spending behavior.

It produces two key indices:

1. Current Situation Index (CSI) – Measures consumer sentiment about the present.
2. Future Expectations Index (FEI) – Captures outlook over the next 12 months.

The urban survey covers 19 major cities, while the rural survey spans across all 31 states and UTs. Responses are collected from several thousand households.

Latest Findings: July 2025 Survey Round

Urban Consumers

1. Current Situation Index (CSI) rose slightly to 96.5 in July 2025 from 95.4 in May, indicating a mild improvement in current economic sentiment.
2. Future Expectations Index (FEI) also edged up, reaching 124.7 from 123.4, showing sustained optimism about future economic conditions.
3. Perceived pessimism around current prices weakened; net responses for price levels improved to –87.0 from –88.5.
4. Net perception of income improved from 0.4 to 2.1, though expectations for future income remained steady (from 52.3 to 52.6).
5. Current spending sentiment rose to 78.0, and future spending expectations rose to 80.0.
6. For non-essential spending, net sentiment turned positive at 0.4 (from –3.4), with future expectations rising to 15.0.
7. Essential spending remained high (current: 86.5, future: 86.2).

Rural & Semi-Urban Consumers

1. CSI improved to 100.6 in July from 100 in May.
2. FEI continued its upward trajectory, reaching 127.7 from 126.2.
3. Inflation perceptions among rural households dropped:
4. Current inflation view decreased to 5.8% (from 6.3%), while one-year-ahead inflation expectations dipped from 8.9% to 7.9%.

What It Means

1. There’s a visible improvement in both current and future consumer confidence across India.
2. Urban consumers show cautious optimism: better perceptions of income and spending, but ongoing concern around employment remains a dampener.
3. Rural and semi-urban households display stronger confidence, buoyed by improved economic conditions and declining inflation expectations—a positive sign for consumption and monetary policy.