New Delhi [India], October 8 (ANI): More than 54 per cent of urban households feel that economic conditions have worsened over the past year, with concerns over employment and rising prices weighing on consumer confidence, according to the Reserve Bank of India's (RBI) September 2026 Urban Consumer Confidence Survey.

The survey showed that 54.5 per cent of respondents felt the general economic situation had deteriorated, up from 50.5 per cent in July and 40.9 per cent in September last year.

Only 25.3 per cent reported an improvement in economic conditions, down from 27.1 per cent in July.

Reflecting the weakening sentiment, the RBI's Current Situation Index (CSI) slipped to 87.9 in September from 88.3 in July, remaining below the neutral level of 100.

The RBI noted that 'Households' confidence for the current period moved marginally,' while optimism about the coming year also weakened.

The outlook for the next 12 months also showed signs of concern, with 38.3 per cent of respondents expecting economic conditions to worsen, compared with 36.3 per cent in July.

The Future Expectations Index (FEI) declined to 113.5 from 115.3, although it remained in positive territory.

Employment and inflation remained key concerns.

'Nearly half of the respondents, or 49.5 per cent, said employment conditions had worsened over the past year, while 35.5 per cent expected the job situation to deteriorate over the next 12 months,' survey highlighted.

Meanwhile, 95 per cent reported rising prices over the past year, up from 93.3 per cent in July, while 84.3 per cent expected prices to increase further.

Despite these concerns, household sentiment on income and spending remained positive.

'The consumer sentiments are optimistic on income and spending amid some concerns regarding economic situation, employment and prices going forward,' the RBI said.

The survey showed that 83.7 per cent of respondents reported higher spending compared with a year ago, up from 80 per cent in July.

The findings highlight a gap between weakening economic confidence and rising household expenditure, at a time when the RBI has raised the repo rate by 25 basis points to 5.50 per cent amid inflation concerns.

However, higher spending does not necessarily indicate stronger consumption, as rising prices can also push up household expenditure.

The survey was conducted between September 10 and 20, covering 6,054 respondents across 19 major cities. (ANI)