The Reserve Bank of India's (RBI) bi-monthly consumer confidence survey revealed a significant increase in consumer confidence, reaching its highest level since mid-2019. The survey, conducted between March 2 and 11, 2023, included 6,083 participants, with a majority being female (50.8%).
The survey results indicated a positive assessment across all parameters, leading to a notable rise in the current situation index (CSI) by 3.4 points to 98.5, marking its highest level since mid-2019. The CSI measures overall consumer sentiment regarding the present economic situation.
The 'future expectations index', which analyses consumer sentiment for the next 12 months, also witnessed a substantial uptick, hitting its peak since mid-2019. The Future Expectations Index (FEI) surged by 2.1 points to 125.2, underscoring a positive outlook for the forthcoming year.
The survey also highlighted improvements in households' sentiments regarding the general economic situation and employment prospects, both for the present and future years.
Data also showcased a rise in capacity utilisation within the manufacturing sector, reaching 74.7% in October-December 2023 from 74% in the previous quarter.
RBI Governor Shaktikanta Das, in his monetary policy speech on Friday, stated that the prospects of investment activity remain bright owing to the upturn in the private capex cycle, persisting and robust government capital expenditure, healthy balance sheets of banks and corporates, and rising capacity utilisation.