Slight decline in spending on non-essential items in February, finds survey

“The February period reveals pocket-sized growth in consumption in overall household products, essential products, health products and media viewing habits. The growth and dynamics in consumption of discretionary products has remained the same as last month. Axis My India said as part of its findings, stable normalcy continues to reflect consumer sentiments for the coming months.

The Sentiment Index monitors five sub-indices- overall household spending, spending on essential and non-essential goods, spending on healthcare, media consumption habits and mobility trends.

Total household expenditure increased for 54% of households in February, showing a growth of 1% over the previous month. It said that this growth was majorly reflected in the eastern part of India.

Spending on essential products such as personal care and household goods rose to the same level as January for 43% of households. This growth is prominently reflected in the western part of India. However, spending on essential items remained the same for 38% of households.

Axis My India surveyed over 10,151 people. Of these, 70% were from rural India, while 30% were from urban India. Of those surveyed, 63 percent were men, while 37 percent were women.

Meanwhile, spending on non-essential and discretionary products such as air conditioners, cars and refrigerators rose for 8% of households, a slight decline of 2% from the previous month when more households bought these items. Expenditure on such high-ticket items remained at the same level in January for 87 percent of households.

Media consumption increased for 22% of the households surveyed – a 2% decrease from the previous month. This surge is seen in 18-35 year olds in the northern and eastern part of India.

Additionally, 90% of households surveyed said they are spending more on short vacations, mall and restaurant visits. Increased travel is seen in only 5% of households while 5% reported reduced mobility.

“With more relaxations from the government in terms of mobility and increased incentives from corporates to return to physical settings, we may see the country trying to go back to the ‘old normal’. “Consumers are spending where necessary and taking ‘very light’ caution on discretionary spending or mobility habits,” said Pradeep Gupta, CMD, Axis My India.

On the other hand, consumption of health goods remained more or less the same for 49% of households; Of those surveyed, 35% reported a jump in such spending.

“Health score which means negative, the less one spends on health items, the better the sentiments, it has a net score value of -19 as compared to -20 last month. This reflects a continuing apprehension for the overall health and well-being of consumers,” according to the survey findings.