The Reserve Bank released the results of May 2023 round of its bi-monthly consumer confidence survey (CCS). The consumer confidence for the current period, as compared to a year ago, has been rising since the second wave of the Covid-19 pandemic; the current situation index (CSI) improved further by 1.5 points from the previous survey round on the back of improved assessment for all the survey parameters, barring essential spending. Respondents remained optimistic on general economic situation in the year ahead: the future expectations index (FEI) also improved marginally in the latest survey round.

Households’ current perception on general economic situation has been improving steadily since September 2022; their one year ahead outlook has also been on uptrend notwithstanding a marginal dip in March 2023. With a substantial improvement in May 2023, households’ sentiment on current income inched closer to the neutral zone and they remain fairly optimistic on employment conditions and future earnings over the next one year.

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