Urban Consumer Confidence Survey for 2025

 

RBI's Urban Consumer Confidence Survey Summary

The Reserve Bank of India's May 2025 Urban Consumer Confidence Survey polled 6,090 respondents across 19 cities from May 2-11, revealing cautious but improving urban sentiment.

Key Findings:

• Current Situation Index (CSI) slightly declined to 95.4 (below neutral 100)
• Future Expectations Index (FEI) rose to 123.4, showing increased optimism
• Inflation concerns decreased: current perception at 7.7%, future expectations at 9.5%
• Income and employment views remained stable, with strong future earnings optimism
• Current spending on essentials and non-essentials dipped slightly, but future spending expectations are positive

Rural Comparison: The new Rural Consumer Confidence Survey shows rural areas remain more optimistic, with CSI at 100.0 and FEI at 126.2, likely due to favourable monsoon conditions and easing food inflation.

Policy Impact: The survey suggests RBI's monetary policy is effectively managing inflation expectations. RBI Governor Sanjay Malhotra noted improving urban demand while rural demand stays steady, emphasizing the need for continued inflation control and job creation efforts.