More urban Indians feel economy worsened: Survey
New Delhi: A recent survey by the Reserve Bank of India reveals that more than half of urban Indian households believe the economy has worsened over the past year. The September 2026 Urban Consumer Confidence Survey indicates that 54.5% of respondents feel the general economic situation has deteriorated, up from 50.5% in July and 40.9% in September 2025. Meanwhile, only 25.3% reported an improvement, a decline from 27.1% in July.
The weakening sentiment is reflected in the RBI's Current Situation Index, which dropped to 87.9 in September from 88.3 in July, remaining below the neutral level of 100. The survey also shows that while household confidence for the current period moved marginally, optimism about the coming year weakened significantly. Specifically, 38.3% of respondents expect economic conditions to worsen over the next 12 months, up from 36.3% in July, with the Future Expectations Index falling to 113.5 from 115.3.
Employment and inflation continue to be major concerns, with 49.5% of respondents stating that employment conditions have worsened over the past year and 35.5% anticipating a deterioration in the job situation over the next year. Rising prices are also a significant worry, with 95% of respondents reporting a year-on-year increase in prices, up from 93.3% in July, and 84.3% expecting prices to continue to rise.
Despite these concerns, the survey reveals a positive outlook on income and spending among consumers. An overwhelming 83.7% of respondents reported higher spending compared to a year ago, up from 80% in July. However, this optimism on income and spending contrasts with the weakening economic confidence and rising prices. The RBI has raised the repo rate by 25 basis points to 5.50% amid inflation concerns, yet higher spending does not necessarily indicate stronger consumption, as rising prices also contribute to increased household expenditure.
The survey, conducted between September 10 and 20, surveyed 6,054 respondents across 19 major Indian cities.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.