61 per cent consumers see their household income declining in the current financial yearDue to the severe impact of the COVID-19 pandemic and induced lockdown, a significant number ofhouseholds across the country reported a decline in their earnings, due to major salary cuts or complete job loss.
The overall consumer spending this year was much lower as compared to previous years, indicating a decline in savings and discretionary purchases.According to the bi-annual Mood of the Consumer Survey by LocalCircles, out of 8,240 responses, 68 per cent of consumers said their household savings declined in the last eightmonths during the COVID-19 pandemic.The survey was conductedto assess consumers spending behaviour during the festive season, spending plans for the next four months, and the household's expectation regarding earnings as well assavings situation by March 2021.
According to the survey, one of the biggest takeaways is that 10 per cent of the respondents plan to spend over Rs 50,000 on discretionary purchases in the next four months while 21 per cent respondents plan to spend between Rs 10,000-50,000 in this period.
This indicates good newsfor varioussectors of the economy which registered aslowdown in consumer demand in the first six months of this financial year.The survey received over44,000 responses from consumers across 302 districts in the country.
Out of them, 62 per cent respondents were men while38 per cent were women.
As many as 55 per cent respondents were from tier I, 26 per cent from tier II, and 19 per cent from tier III, IV and rural districts.
However, almost50 per cent of consumers have plans to spend on buying discretionary products or assets in the next four months.Some of the key takeaways from the survey are as follows:68 per cent ofconsumers said thattheir household saving declined in the last eightmonths during COVID-19 pandemic66 per centof consumers spent Rs1,000 or more during the festive season with consumer spending doing 10 per centbetter than anticipated10 per centhouseholds expected to spend over Rs 50,000 in discretionary purchases in the next fourmonths48 per cent ofconsumers will make discretionary purchases in the next fourmonths.
The top areas of spending include home renovation,furnishings, travel and white goods61 per centconsumers see their household income declining in the current financial year15 per centfewer households now expect their annual earnings to decline this year