About 55 percent of consumers from across rural and urban India reported a rise in their household spending this month compared to 8 percent who said their spending decreased, according to the India Consumer Sentiment Index, a monthly analysis of consumer perception compiled by Axis My India.
The report, exclusively accessed by Moneycontrol, however, shows a marginal one-point decline in the share of consumers reporting increased household spending from the month before. This was also reflected in the overall net score for household spending, which declined from +48 to +47.
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 the latest report, the net score for overall consumer sentiments has gone up one-point, from 7 to 8, this month.
Spending on essentials goes down
The report also shows the share of households in which spending on essentials, like personal care and household items increased, was at 41 percent this month, down from the 46 percent reported in December. This has also resulted in the overall net score for the category, which was at +28 in the December report, coming down to +26 this month.
However, compared to a year before, as much as 73 percent of families reported an increase in their household expenses. Meanwhile, as much as 50 percent of the surveyed thought that high costs of products and services due to inflation affected their household expenditure.
Non-essential spending remains the same for most
Only 7 percent of the families of those surveyed reported increased spending on non-essential items like air conditioners, cars, and refrigerators. This reflects a one percent dip in their share from the previous survey.
However, an increased share of consumers have reported that their household's spending on such items remained the same this month (from 84 percent to 88 percent), and a lower percentage of people reported that their spending has declined (from 9 percent to 5 percent). This has resulted in an increase in the overall net score for the category. The net score for non-essential spending has gone up from -1 to +2 this month.
Spending on health-related items declines
Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 39 percent households this month. But the share of such families with increased spending has declined by 3 points from last month. Meanwhile, as much as 19 percent of those surveyed said health-related expenses were responsible for the increased expenditure of their households.
The net-score value of spending on health-related items remained at -27, the same as the last survey. A negative net-score for spending on health-related items is considered to be a positive thing due to its negative connotations. As it is considered that the lesser that is spent on health items, the better the sentiments will be.
Mobility goes up
On a positive note, mobility has increased for 7 percent of the families, which reflects an increase by 1 percent from last month. The net indicator score for mobility, which was at -2 last month, has reported +2 this month.
Meanwhile, media consumption, including TV, internet, and radio, went up in the households of 21 percent of consumers surveyed, the same as last month. The net score for the same remained at -2.
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