News Karnataka
Sunday, December 04 2022
Business

RBI survey finds consumers cutting non-essential spends

Photo Credit :

New Delhi: In apparent pessimism following declining GDP and job uncertainty, a Reserve Bank of India (RBI) survey has found Indian consumers cutting down on their discretionary spends. Not only consumers, but even manufacturers remain anxious about the future.

As per the RBI’s consumer confidence survey, people’s spending on non-essential items of consumption has shrunk compared to a year ago even as they expect their overall spending to remain unchanged largely due to an increase in prices.

“Based on the Reserve Bank’s consumer confidence survey, spending on non-essential items of consumption has shrunk compared to a year ago; however, consumers expect their overall spending to remain unchanged going forward largely due to an increase in prices,” the central bank said in its monetary policy statement issued on Thursday.

Manufacturing firms polled in the industrial outlook survey of the RBI expect weak demand conditions and reduced input price pressures in the third and fourth quarter of the current fiscal.

Further, they expect further weakening of pricing power on muted output prices.

The RBI survey in November found households expecting prices to rise by 120 basis points over the 3-month ahead horizon and 180 basis points over the next year.

The misery of slowdown-hit households does not seem to end any time soon as factory output has also been in a downward spiral. The capacity utilisation declined to 68.9 per cent in Q2 of 2019-20 from 73.6 per cent in Q1 in the early results of the RBI’s order books, inventories and capacity utilisation survey (OBICUS).

Lower capacity utilisation means fewer fresh investments and hence less job opportunities in the market.

With the second quarter GDP slipping to six-year low of 4.5 per cent and very few macro indicators signalling a fast recovery, the RBI on Thursday cut GDP growth forecast for the current fiscal to 5 per cent.

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp