Chart of the Day : RBI survey shows festival spending may not shine much

Chart of the Day

Chart of the Day : The consumer sentiment survey of the Reserve Bank of India shows that Indians are still pessimistic when it comes to discretionary spending.

On Friday, Reserve Bank of India Governor Shaktikanta Das expressed hope that this festival season would see some big spending by Indians. “There is a sustained revival in urban demand which should get a further impetus from unfettered celebration of upcoming festivals after two and half years of living with COVID-19,” he said. But as the above chart shows, the RBI’s own survey of consumers doesn’t paint a good picture on spending. Granted, Indians are less pessimistic than before on spending with the net response on overall spending showing marginal improvement. That said, festival season is all about discretionary spending. Here, Indians are still pessimistic. The net response is a negative 3.6 percent which means pessimistic consumers are more than optimistic ones. Overall sentiment towards spending remains cautious as more than a third of Indians are still wary of their prospects. The ongoing festival season may be far better than during the pandemic but it still is far from sanguine. Chart of the Day

An RBI survey suggests that upcoming festival spending in India might be subdued [possible source: financial news website]. This is in contrast to the usual trend of increased spending during festivals. Chart of the Day

Here’s what we can infer from this news:

  • People might be cautious about spending due to economic reasons.
  • This could impact sales for businesses that rely heavily on festivals. Chart of the Day

It would be helpful to look for further details on the survey, such as:

  • Reasons behind the subdued spending sentiment.
  • Specific festivals likely to be affected.
  • How this compares to previous festivals.

Knowing these details would give a clearer picture of the potential impact. Chart of the Day

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