This was supported by profit in non -less diseases, which registered a rare positive sentiment of 0.4, a remarkable shift of -3.4 in May | Photocredit: Reuters
The Reserve Bank of India (RBI) released the results of the Tour of July 2025 of the Urban Consumer Confidence Survey (UCCS) on Thursday, which showed a marginal improvement in the sentiment of urban households.
According to the bi-monthly survey between 1-12 July in 19 major cities, for 5,592 respondents, the current situation index (CSI) rose to 96.5 of 95.4 in May in July, with an increase of 1.1 points. The improvement was attributed to better perception of consumers for income, expenditure and general economic conditions, despite persistent concerns about employment and price levels.
The Future Expectations Index (FEI), which records the outlook of the consumer for the following year, also stuck with 1.3 points to 124.7 of 123.4 in the previous round, as a result of sustainable optimism about economic prospects, income growth and future expenses.
Pessimism in particular around the current price situation and inflation relaxed the third consecutive research round. The net response to price levels improved in July to -87.0 in July in May.
Although the net perception with regard to current income improved to 2.1 (from 0.4 in May), the expectations of future income remained in broad lines, with the net response rising marginally from 52.3 to 52.6. This indicates that although more households feel that their income has recently been improved, their expectations for the future remain stable.
In the field of employment, the current sentiment fell with the net answer that dropped to -6.7 in July from -5.9 in May. But the future -oriented optimism continued to exist because the expectations for work in the following year saw an increase in the net response to 31.0 of 29.8 earlier.
Spending trends continued to reflect strong consumer confidence. The net response for the current expenditure improved to 78.0, while expectations for future expenses increased to 80.0. This was supported by profit in non -less diseases, which registered a rare positive Net sentiment of 0.4, a remarkable shift of -3.4 in May, and future expectations on this front climbed to 15.0 from 13.8.
Essential expenses consistently remained high with a net response of 86.5 for current perception and 86.2 for future expectations. The RBI repeated that the views expressed in the survey are those of the respondents and may not necessarily reflect the position of the central bank.
Published on August 7, 2025
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