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Household spending: The findings are based on a survey of 10,019 people across India, of which 70 percent are from rural areas and the rest of the 30 percent are from urban areas. According to this, the net score for overall consumer sentiments has gone up one-point, from 7 to 8, this month.
The overall household spending has increased for 55 percent of families in January across rural and urban India, according to the India Consumer Sentiment Index, a monthly analysis of consumer perception compiled by Axis My India. In December 2022, household spending increased for 56 percent and in November 2022, it was for 59 percent.
The net score of consumer sentiments on household spending decreased by 1 percent compared to last month. It was +48 last month, which has decreased by 1 to +47 this month, the survey report said. This shows a marginal decline in the share of consumers reporting increased household spending from the month before.
The findings are based on a survey of 10,019 people across India, of which 70 percent are from rural areas and the rest of the 30 percent are from urban areas.
How overall spending has changed compared to recent months?
Has household expenses increased this year compared to previous?
Compared to last year, 73 percent people said that household expenditure has increased for them compared to last year.
Spending on essential and non-essential items
Spending on essentials like personal care and household items has increased for 41 percent of families, which reflects a decrease by 5 percent. The net score which was at +28 last month, decreased by two at +26 this month
Spending on non-essential and discretionary products like AC, cars, and refrigerators has increased for 7 percent of families, which reflects a decrease by a percent from last month. The net score, which was at -1 last month has increased to +2 this month, showcasing an upward sentiment
Spending on health items
Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 39 percent of families. This reflects a decrease in consumption by 3 percent from last month. 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 -27, which remained same as last month.
Spending on media (TV, radio. newspaper)
Consumption of media has increased for 21 percent of families, which is the same as last month. The overall, net score, which was at -2 last month, remains the same. Mobility has increased for 7 percent of the families, which reflects an increase by 1 percent from last month. The overall mobility net indicator score which was at -2 last month, has reported +2 this month.
What affected expenses this year?
50 percent of the surveyed thought that high costs of products and services due to inflation affected the household expense, while 19 percent mentioned that the increased expense is because of increased health related expenses.
|High costs of products and services due to inflation||50|
|Health related expenses||19|
|Opted for education loan/home loan/personal loan/new car||8|
|More expenditure on discretionary and lifestyle products||7|