Indian consumer confidence at more than four-year high, cenbank data shows

- ADVERTISEMENT -

MUMBAI (Reuters) – Consumer confidence in India is at its highest level since mid-2019, a survey conducted by the Reserve Bank of India showed on Friday.

Consumers’ confidence in their current economic situation has been on a path of sustained recovery, the central bank said, adding that sentiment on both the general economic situation and employment had improved.

The ‘future expectations index’, which judges consumer sentiment for the upcoming 12 months, also improved to its highest since mid-2019, the survey showed.

The Indian economy is seen growing at a robust pace of 7% in 2024-25, the central bank said on Friday while keeping interest rates on hold as it waits for inflation to move to its 4% target.

A separate survey on household inflation expectations showed that consumers expect inflation to moderate from current levels.

The data also showed that capacity utilisation in the manufacturing sector increased to 74.7% in October-December 2023 from 74% in the previous quarter.

“The prospects of investment activity remain bright owing to upturn in the private capex cycle becoming steadily broad-based, persisting and robust government capital expenditure, healthy balance sheets of banks and corporates, and rising capacity utilisation,” central bank Governor Shaktikanta Das said on Friday, April 5.