The lowest consumer sentiment in 5 years: survey
Consumer confidence in India it fell to its lowest level since at least 2014, the year the Prime Minister Narendra Modi came to power.
The current situation index fell to 85.7 in November from 89.4 in September, according to the consumer confidence survey of the Reserve Bank of India, where 100 is the dividing line between pessimism and optimism. The indicator of future expectations, which takes into account perceptions one year ahead, fell to 114.5 from 118.0.
The decline coincides with a deepening slowdown in Asia's third largest economy and greater concerns about employment. The one-year crisis in the shadow banking sector has tightened loans, affecting domestic consumption that accounts for about 60% of the nation's economy. All this contributed to the cooling of growth to a new minimum of six years in the quarter ended in September.
The central bank survey was conducted in 13 large cities and 5,334 households. Consumers were surveyed about perceptions and expectations about the general economic situation, the employment scenario, the general price situation, apart from income and expenses.
Worried enough, respondents felt that prices have increased in the last year and are likely to increase in the next year, which implies that inflationary pressures are likely to remain rigid in the short term.
On Thursday, the central bank of India ignored the concerns of lower growth to keep interest rates unchanged amid an increase in general inflation . The six members Monetary Policy Committee headed by the governor Shaktikanta Das He decided to wait and see how the five rate cuts already delivered this year materialize before he does more.