Economic Slowdown: Consumer Confidence Dips, Over 50% Indians Feel Employment Situation Has Worsened, Says RBI Survey

Team Latestly

New Delhi, October 6: The Consumer Sentiment Survey findings, released along with the Monetary Policy Report of the Reserve Bank of India (RBI), has rang another alarm over the state of economy. The survey claims that consumer confidence has dipped to a six-year low in September, as majority of the participants said their discretionary spending power has weakened over the past one year. Rahul Gandhi Hits Out at Modi Government Over Economic Slowdown, Says PM Must Address Unemployment Issue.

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The survey was conducted in 13 major cities of the nation, where a total of 5,192 households were reached out to.  Among the respondents, 47.9 per cent said the overall economic situation has worsened, whereas, 33.5 per cent said it has improved. Nearly 53 per cent claimed that the ongoing slowdown would be overcome within a year's period.

The Current Situation Index (CSI), which is used by the RBI to measure the consumers' confidence in the economy, recorded an over six-point dip in September as compared to July. The CSI dropped to 89.4 from 95.7, claimed the data released by the central bank on Friday.

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On the employment front, the survey paints a more concerning picture as more than half of the respondents have raised apprehension over unemployment. 52.5 per cent of the respondents felt the employment situation has worsened, whereas, 33.5 per cent said it would get worse in the coming year.

Meanwhile, this monetary policy marked the fifth consecutive repo rate cut by the RBI. The rate at which the central bank lends to its commercial counterparts has been lowered by 25 basis points, bringing it down to 5.15 per cent. The move is expected to infuse fresh liquidity in the market, which could in turn boost the demand side of the economy.