Indian consumers are generally getting less optimistic about the economic situation, employment, and fear price rise over the year ahead, according to surveys released by the Reserve Bank of India (RBI).

The RBI’s consumer confidence “declined in July as reflected in the current situation index (CSI); the future expectations index (FEI) fell by about 4 points,” the RBI said.

“Consumers’ perceptions on the general economic situation and the employment scenario softened, while their assessment of their own incomes turned out to be less optimistic than in May 2019.”

Responses totaling 5,351 in 13 major cities perceived a rise in the price level and the majority expect prices to rise over the year ahead.

“… this boosted sentiments on overall spending, but they were less optimistic about discretionary spending,” the survey said.

A separate Order Books, Inventories and Capacity Utilisation Survey (OBICUS) showed that capacity utilisation, on a seasonally adjusted basis, declined by 1.1 percentage points to 74.5 per cent in the fourth quarter of 2018-19. At an aggregate level, however, capacity utilisation rose 0.2 percentage points to 76.1 per cent in the fourth quarter. ALSO READ: Banks should pass on rate-cut benefits to spur investment, says India Inc

Interestingly, although fewer new orders were received in the fourth quarter, relative to the preceding quarter, order books increased on a year on year basis and moved into expansion zone on the back of favourable base effects.

There was decline in sales, and raw materials to sales ratio also rose.