In February, a 1% increase in household spending means the increase was for 54% of families across urban and rural India.
According to findings released on Tuesday of a monthly CSI survey by Axis My India, fewer families increased spending on discretionary items in February.
Pocket-sized increase in overall household spending
A pocket-sized consumption increased for household products, health products, media viewing habits, and necessary products.
As part of its findings, Axis My India says, “The period of February reveals a pocket-sized increase in consumption across overall household products, necessary products, health products and media viewing habits. Increase in consumption of discretionary products and mobility remain the same as last month. Return to steady normalcy continues to mirror consumer sentiments for the upcoming months.”
The sentiment index observes five sub-indices – overall household spending, media consumption habits, spending on essential and non-essential items, spending on healthcare, and mobility trends.
Increase in various household spending habits
Similar to January, spending on personal care and household items increased 43% of families.
However, household spending habits remained the same for 38% of families.
Nevertheless, the Western part of India reflected a significant increase in household spending.
According to a survey of 10,151 people by Axis My India, 70% belonged to rural India, and 30% belonged to urban India.
Moreover, the spending on non-essential and discretionary items like air conditioners, refrigerators, and cars dipped 2% from the previous month.
87% of families remained at similar levels of January of expenditure on high-ticket items.
A survey of 90% of families says they spend on short vacations, restaurant and mall visits.
Also, while 5% of families reported reduced mobility, 5% reflected increased travel.
Increase in consumer habits
CMD Axis My India, Pradeep Gupta, said, “with greater relaxation from the government in terms of mobility and increased encouragement from corporates to return to physical setting, we can witness the country’s effort to go back to the ‘old normal.’ Consumers are spending where necessary and exercising ‘very mild’ caution on discretionary expenditures or mobility habits.”
Furthermore, consumption in health-related items jumped 35%, while expenditure for 49% remained the same.
As per the findings of the survey, “The health score which has a negative connotation, i.e., the lesser the spends on health items the better the sentiments, has a net score value of – 19 as compared to – 20 last month. This signifies persisted apprehension for overall health and well-being of the consumers.”
The increase in household spending indicates that the economy may go back to pre-Covid times. Furthermore, as consumption increases, it benefits various industries.