The Reserve Bank of India’s Urban Consumer Confidence Survey (UCCS) for May 2025, conducted between May 2–11 across 6,090 households in 19 major cities, indicates stable albeit cautious sentiment about current economic conditions, along with rising optimism for the future. Key economic indicators like inflation concerns and income expectations are showing encouraging trends.

Key Points

• The Current Situation Index (CSI) edged down slightly to 95.4 from 95.5 in March, remaining below the neutral level of 100 
• The Future Expectations Index (FEI) rose to 123.4 from 122.4, reflecting growing optimism around income, employment, and spending 
• Perceived current inflation eased to 7.7%, and one-year-ahead inflation expectations declined to 9.5%, signaling easing inflation concerns 
• Expected future incomes and employment prospects improved, though current spending dipped slightly for essentials and non-essentials 
• While the current outlook remains subdued (CSI <100), consumer sentiment is notably more positive about future financial conditions.