With the beginning of the festive season in India, consumer sentiment in the country is also improving. 42 percent of families will shop more or the same this year as compared to 2020.
As per a report by Axis My India, the expected increase in spends is higher among private and government service employees.
Moreover, overall household spending has also increased for 56 percent of the families in August, compared to 54 percent in July. The increase is higher in the north, at 61 percent.
“As the festive season approaches, consumers are slowly stepping out – as proven by increased numbers for non-essential spending and mobility,” Pradeep Gupta, CMD, Axis My India, said.
“This should have a positive effect on the hospitality industry which has been severely affected due to the pandemic. Tourism, however, continues to be a concern as 83 percent of the respondents are still averse to traveling. Economic sentiment is looking buoyant with 64 percent of the respondents expecting the Sensex to cross 60,000 before the end of this year,” Gupta added.
As part of the other key findings, spends have increased on essentials like personal and household care by 47 percent. However, the consumers are still being cautious about spending on non-essential and discretionary products. Only 21 percent of families surveyed have mentioned an increase in non-essential spending.
The consumption of health-related items has increased or remained the same for 79 percent of families and decreased by 21 percent. The health score has a net score value of -24, the report added.
On the other hand, media consumption has increased for 25 percent of families and remained the same for 47 percent. The media consumption increase is highest in the 18-25 year age group at 32 percent, the study revealed.
The overall mobility score has reached -8 from -24 last month, while 93 percent of families are going out the same or less on short vacations or visiting malls or restaurants. Meanwhile, the net Consumer Sentiment Index (CSI) score has been recorded at +6, rising at the fastest pace over the last month, the company said in a statement.