The Reserve Bank of India’s consumer confidence index fell to a record low, with the second wave of Covid-19 affecting most people’s outlook on both the economy as well as employment. The Current Situation Index (CSI) and the Future Expectation Index (FEI) fell to an all-time low of 48.5 and 96.4 in the latest round of the central bank’s consumer confidence survey released on Friday. A collapse in consumer sentiment is bound to affect aggregate demand and therefore economic recovery. The second wave of Covid-19 infections, in terms of seven-day average of daily cases peaked on May 9. Thus, the latest round of the survey coincided with the worst phase of the pandemic in India.

Source: Hindustan Times June 04, 2021 21:11 UTC