India’s Central Bank surveys indicate higher consumer expectations of economy
Indian consumers are less pessimistic about the general economic situation, employment scenario, as well as household income and expenditure, according to a series of surveys released by the country’s Central Bank on Friday.
The current situation index for September improved to 107, compared to 104 in an earlier survey conducted in May, while the future expectation index improved to 57.7 compared to 48.6 in July this year.
Due to the gradual easing of COVID-19 restrictions, the survey was conducted through physical interviews with 5,237 households in 13 major Indian cities from Aug. 29 to Sept. 7 this year.
Inflation expectations of the polled households have moderated, while the Indian consumers are more confident about the general economic outlook and employment for the upcoming one-year period.
The manufacturing survey found that companies saw a rebound in demands based on production, order books and employment after contractions in the preceding quarter during the second wave of the pandemic.
However, input cost pressures are likely to intensify in the third quarter of the financial year 2021-22, while selling prices and profit margins are expected to rise too, said the survey.