Just before the festive season in November, consumer confidence remained stable, according to the November 2023 edition of the Reserve Bank of India’s bi-monthly Consumer Confidence Survey. While the pessimism related to the current general economic situation and employment was higher compared to the previous round, it was offset by a positive sentiment on current income. The survey gathers the views of households in relation to the previous year, focusing on the general economic climate, employment conditions, price trends, and individual income and expenditures across 19 major cities. The most recent iteration of this survey took place between November 2 to 11, 2023, with 6,082 participants. Female respondents formed 52.8% of the sample. In November 2023, 33.1% of the respondents said that the general economic situation had improved compared to a year ago (Chart 1). This was the highest for any November since 2019. However, it had slipped by three percentage points from 36.1% in September 2023. Levels of pessimism about the economy are also on the decrease. In November 2023, only 44.4% said that the economic situation had worsened compared to a year ago — the lowest for any November since 2017. However, those who felt the economy had worsened continued to be more than those who felt it had improved.
Chart 1 | The chart plots respondents’ views on the general economic situation compared to the year earlier.
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In November 2023, 32.3% said job opportunities had improved compared to a year ago. While this is the highest for any November since 2019, it had dropped from 34% in September 2023 and was only marginally higher than 31.8% a year ago (Chart 2). Pessimism about job opportunities has also shown a decline. In November 2023, 44.7% said their employment levels had worsened compared to a year ago — the lowest for any November since 2017.
Chart 2 | The chart plots respondents’ views on the employment situation compared to the year earlier.
In the survey month, 91.3% of respondents said the price levels of commodities had increased compared to a year ago (Chart 3). The share of such respondents has been more than 90% since March 2021, or 17 consecutive survey months. The figure was lower when compared to November 2022 (94.9%) and 2021 (95.1%).
Chart 3 | The chart plots respondents’ views on price levels of commodities compared to the year earlier.
About 27% of the respondents said their income levels had improved compared to a year ago during the survey period (Chart 4). The share of such respondents is the highest since July 2019. It is also the highest for any November since 2019. Pessimism about income levels is also decreasing. In November 2023, 22.7% also said their income levels had worsened compared to a year ago — the lowest for any November after 2018.
Chart 4 | The chart plots respondents’ views on income levels compared to the year earlier.
In November 2023, 74.8% said their spending levels had increased compared to a year ago — at the same level as November 2022 (74.9%). The figure has remained around the same level in all the survey months since the past year. For the second consecutive November, the share of such respondents has persisted above the 70% mark (Chart 5).
Chart 5 | The chart plots respondents’ views on spending levels compared to the year earlier.
So, pessimism about the general economic situation, employment opportunities and income levels has shown a declining trend. A higher share of respondents said that income levels have improved. However, a high share of respondents continue to feel that the price level of commodities is higher than a year ago.
Source: Reserve Bank of India’s Consumer Confidence Survey
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