Inflation expectations of households eased in September, while consumer confidence rose to the highest in four years, according to surveys by the RBI.
Households' perception of current inflation has moderated by 50 basis points since the July round of the survey to 8.4% in September, according to the bi-monthly inflation expectations survey of households.
Median inflation expectations of households declined by 90 bps and 40 bps for three months and one-year-ahead periods, respectively, to reach 9.1% and 9.9%.
Inflation expectations have reverted to single-digits for the first time since the onset of the Covid-19 pandemic.
Consumer Confidence Picks Up
Consumer confidence for the current period reverted to its recovery path after a brief pause in the July round of the survey.
The current situation index reached a four-year high on the back of respondents' better assessment of the current general economic situation and employment conditions in September.
The general economic outlook as well as the prospects for employment, income, and spending are expected to improve over the next year. The future expectations index also reached a four-year high.
The survey collects current perceptions vis-à-vis a year-ago and one-year-ahead expectations of households on the general economic situation, employment scenario, overall price situation, and own income and spending across 19 major cities.
Capacity Utilisation Eases
At the aggregate level, capacity utilisation in the manufacturing sector recorded a seasonal decline to 73.6% in the first quarter of the current financial year from 76.3% in the previous quarter.
The seasonally adjusted CU for the June quarter improved by 130 bps from its level in the previous quarter and stood at 75.4%.
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