India’s consumer confidence was at a six-year low— and it just dipped further
- The Consumer confidence index — that measures the economic situation, income and employment — dipped to a new low of 83.7 in January.
- The index, which reflects the mood of the consumers, has been declining for xx months in a row.
- This coincides with the unemployment rate, which hit 7.1% in January, according to the Centre for Monitoring Indian Economy (CMIE).
The consumer confidence index — that measures the economic situation, income and employment from over 5,300 households across 13 cities — dipped to a new low of 83.7 in January. And why not, the rising prices are pinching pockets without any hope of gainful employment or better salaries.
The Reserve Bank of India (
This coincided with the unemployment rate, which was recorded at 7.1% in January 2020, according to data from the Centre for Monitoring Indian Economy (CMIE).
The more money people have to spend on things that they need for survival, the less they spend on discretionary items like homes and cars. “Most households perceived prices and spending having increased during the past one year and expect further rise in expenditure over the next one year; but households reported lower spending on non-essential items as compared to one year ago,” the latest survey said.
And this very squeeze is at the heart of India’s ongoing economic slump, the lack of consumer demand.
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