Urban Consumers Show Resilience, Anticipate Improved Economic Conditions: RBI Report

According to the survey data, the overall Consumer Confidence Index (CCI) registered a marginal decline, dipping slightly from 95.5 in March to 95.4 in May 2025

A key takeaway from the survey is the growing optimism among urban households regarding inflation and price levels

Source : PTI

The Reserve Bank of India's Urban Consumer Confidence Survey (UCCS) for May 2025 indicates that consumer sentiments regarding the current economic situation have remained largely stable compared to March, supported by slight improvements in areas such as employment and prices, though these still remain in the negative zone.

According to the survey data, the overall Consumer Confidence Index (CCI) registered a marginal decline, dipping slightly from 95.5 in March to 95.4 in May 2025. This reflects a minor weakening in current consumer sentiment.

However, expectations for the future have improved notably. The survey findings stated that the people are more optimistic about the economic outlook, employment prospects, income levels, and their ability to spend.

This growing optimism pushed the Future Expectations Index (FEI) up by 1 point, from 122.4 in March to 123.4 in May.

The RBI conducted the survey between May 2 and May 11, covering 6,090 respondents across 19 major Indian cities. The survey highlights how urban households perceive the present economic environment and what they anticipate for the coming year.

A key takeaway from the survey is the growing optimism among urban households regarding inflation and price levels. This is the second consecutive round where concerns about high prices have declined. Looking ahead, most respondents expect inflation and prices to ease further.

RBI said "Pessimism about the current price level and inflation continued to ease for the second consecutive round. Households also expect a decline in both price and inflationary pressures over the coming year"

Although consumers did not report a major change in their current income levels, there is strong optimism about future earnings.

"Households remain firmly optimistic on future earnings even though their sentiment on current earnings remained around its March 2025 level," the RBI added.

Spending patterns also reflect this cautious optimism. While current spending, both on essential and non-essential items, has seen a slight dip compared to March, expectations for future spending have improved.

In summary, the survey revealed that while consumers feel only slightly better about present conditions, they are significantly more confident and hopeful about the year ahead. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)