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Key Points

The RBI's latest survey shows urban consumer confidence inching up in July 2025. Households reported better income and spending perceptions, though job concerns persist. Future expectations remain optimistic, with inflation worries easing further. Non-essential spending sentiment turned positive, signaling stronger consumer confidence.

Key Points: RBI Survey Shows Urban Consumer Confidence Rises in July 2025

  • Current Situation Index rises to 96.5 amid better income perceptions
  • Future Expectations Index climbs to 124.7 on economic optimism
  • Inflation concerns ease for third straight survey round
  • Non-essential spending sentiment turns positive for the first time
2 min read

RBI survey shows uptick in urban consumer confidence in July 2025

RBI's July 2025 survey reveals improved urban consumer sentiment on income and spending despite lingering job and inflation concerns.

"The Future Expectations Index rose to 124.7, reflecting sustained optimism about economic outlook and income growth. – RBI Urban Consumer Confidence Survey"

New Delhi, August 7

The Reserve Bank of India (RBI) on Thursday released the results of its July 2025 round of the Urban Consumer Confidence Survey (UCCS), which showed a marginal improvement in the sentiment of urban households.

According to the bi-monthly survey conducted between July 1-12 across 19 major cities, covering 5,592 respondents, the Current Situation Index (CSI) rose to 96.5 in July from 95.4 in May, marking a 1.1-point increase.

The improvement was attributed to better consumer perceptions on income, spending, and general economic conditions, despite persisting concerns on employment and price levels.

The Future Expectations Index (FEI), which captures consumer outlook for the next one year, also edged up by 1.3 points to 124.7 from 123.4 in the previous round, reflecting sustained optimism about the economic outlook, income growth, and future spending.

Notably, pessimism surrounding the current price situation and inflation eased for the third straight survey round. The net response on price levels improved to -87.0 in July from -88.5 in May.

While the net perception regarding current income improved to 2.1 (from 0.4 in May), expectations of future income remained broadly stable, with the net response rising marginally from 52.3 to 52.6.

This indicates that while more households feel their incomes have improved recently, their expectations for the future remain steady.

On employment front, the current sentiment dipped with the net response falling to -6.7 in July from -5.9 in May.

However, forward-looking optimism persisted as expectations for employment in the next one year saw an uptick in the net response to 31.0 from 29.8 earlier.

Spending trends continued to reflect strong consumer confidence. The net response for current spending improved to 78.0, while expectations for future spending rose to 80.0.

This was supported by gains in non-essential spending, which registered a rare positive net sentiment of 0.4, a notable shift from -3.4 in May, and future expectations on this front climbed to 15.0 from 13.8.

Essential spending remained consistently high with a net response of 86.5 for current perception and 86.2 for future expectations.

The RBI reiterated that the views expressed in the survey are those of the respondents and may not necessarily reflect the central bank's own stance.

- ANI

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Reader Comments

P
Priya S
The survey shows positive trends but I wonder if this reflects ground reality in smaller cities too? Most respondents seem to be from metros where incomes are higher. Tier 2/3 cities might tell a different story.
R
Rohit P
Finally some good news! My business has seen better sales this quarter. People are spending more on electronics and home appliances. Maybe the economy is really turning around 🇮🇳
S
Sarah B
As an expat living in Bangalore, I've noticed more people dining out and shopping. But the employment numbers concern me - how can confidence grow if job security remains shaky?
K
Kavya N
The survey says non-essential spending is up but I'm still cutting back on luxuries. Maybe others are doing better, but for salaried people like me, every rupee counts! #MiddleClassStruggles
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Vikram M
RBI's data looks promising but let's not celebrate yet. We need to see if this trend continues post-monsoon when vegetable prices typically spike. The real test is still ahead.
M
Michael C
Interesting to see India's consumer confidence improving while other major economies struggle. The 1.1 point increase might seem small, but in economic terms, it's significant. Well done India!

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