From UPSC perspective, the following things are important :
Prelims level: Consumer Confidence Survey (CCS)
Mains level: NA
Why in the news?
- The latest Consumer Confidence Survey conducted by the Reserve Bank of India in March 2024 reveals a significant boost in consumer confidence, particularly regarding future expectations.
- It says consumer confidence has hit highest level in nearly 5 years.
What is Consumer Confidence Survey (CCS)?
- The RBI conducts a bi-monthly Consumer Confidence Survey to measure consumers’ perceptions of the prevailing economic situation.
- It was started in 2015 with surveys in 13 major cities.
- The survey is conducted across various cities and measures consumer confidence on parameters such as the economy, employment, price, income, and spending.
- The survey consists of questions regarding consumers’ sentiments over various factors in the current situation and future.
Here are a few parameters that help aggregate overall confidence:
- Spending: The consumer is asked about the willingness to spend on major consumer durables, purchasing vehicles, or real estate. This measures the overall spending scenario on necessities as well as luxuries for the next quarter.
- Employment: The consumer is asked about current and future ideas on employment situations, joblessness, job security, which reflects the sentiments of the current or expected employment in the country.
- Inflation: The consumer is asked about interest rates and levels of prices of all goods, tracking the price expected by consumers and their spending on basic necessities.
Components of CCS:
- Current Situation Index (CSI): It measures overall consumer sentiment regarding the present economic situation.
- Future Expectations Index (FEI): It analyses consumer sentiment for the next 12 months.
CSI and FEI are calculated based on people’s views about the economy, their income, spending, job opportunities, and prices compared to the previous year and expectations for the year ahead.
Key Highlights of the recent report
- Future Expectations Index (FEI) has climbed by 2.1 points to reach 125.2, marking its highest level since mid-2019, indicating heightened optimism among consumers for the year ahead.
- Current Situation Index (CSI) has surged by 3.4 points to reach 98.5, marking its highest level since mid-2019.
PYQ:[2018] As per the NSSO 70th Round “Situation Assessment Survey of Agricultural Households”, consider the following statements- 1. Rajasthan has the highest percentage share of agricultural households among its rural households. 2. Out of the total agricultural households in the country, a little over 60 percent belong to OBCs. 3. In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities. Which of the statements given above is/are correct? (a) 2 and 3 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 |
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