Consumer Confidence and its Impact on Economy

Consumer confidence is a degree of optimism that a buyer feels about the overall state of the economy and their personal finance situation. 

Which literally means,

If the consumer has confidence in the economy the buyer will tend to spend more than his savings. 

In contrast, when consumer confidence in economy is low, buyers will intend to save more. 

It can be easily be understood from this reaction of buyers that consumer confidence is directly proportional to  the state of economic expansion or contraction.

Consumer Confidence in India averaged 101.03 points from 2010 until 2020, reaching an all time high of 116.70 points in the fourth quarter of 2010 and a record low of 63.70 points in the second quarter of 2020.

Current Situation Index (CSI) is part of the Consumer Confidence Survey published by the RBI

Globally, deteriorating job prospects and rising uncertainties about personal finance were t