Huge fall in consumer confidence index – economy increased expectations, people buying only essential things

The second wave of Corona has brought down the Consumer Confidence Index significantly. Consumer confidence has been negative since 2019 itself. But the corona infection has caused great damage to it. According to the RBI survey, it was 53.1 percent in March 2021 but fell to 48.5 percent in May 2021. Consumer confidence plays an important role in boosting economic growth. It shows the consumption of households. When the consumer expresses confidence in the current and future economy of the country, then he spends more. This condition increases this index.

People’s purchasing power decreased due to decline in employment

According to the RBI survey, the perception about the economic situation fell to -75 in May. It was at -63.9 per cent in March. Employment perception stood at -74.9 per cent in May, while it was -62.4 in March. According to the latest RBI survey, household spending is decreasing in the country. There is a steady decline in non-essential expenditure. This survey of RBI was done from April 29 to May 10 in 13 big cities of the country. In this 5258 people were talked to. People were asked questions on employment status, economic conditions, prices of goods, earnings and expenses.

Salary and pension will no longer stop due to holiday, NACH will work every day from August 1

Unemployment increased due to deteriorating condition of MSMEs

After its monetary policy review on Friday, the RBI decided to keep the interest rates unchanged. Along with this, it increased the loan restructuring limit for MSME sector from Rs 25 crore to Rs 50 crore. In fact, due to the decrease in employment in the country, the spending capacity of the people is continuously decreasing. Its effect is clearly visible on consumer confidence. People are losing faith in the economy.