Survey finds 42% families to spend more or same as last year during this festive season

Around 42 per cent of the families polled in a survey on consumer sentiment in August have said they will likely spend more or the same compared to last year during the festive season, showing a sense of cautious optimism.

The survey conducted by Axis My India finds that the pent-up demand or a degree of revenge shopping, which happened last year, may not be the same this year.

The expected increase in spending is higher among private and government service employees, finds the survey. The sentiment analysis delved into five sub-indices -- overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits and mobility trends.

In other key findings, the survey found the overall household spending has increased for 56 per cent of the families polled in August. It is an increase of 2 percentage points from 54 per cent in July. The rise in spending on essentials like personal and household care products stood 47 per cent, up by four percentage points over July.

On non-essential and discretionary products, spending in August rose for 21 per cent of families polled in the survey. This figure was 15 per cent in July.

The consumption of health-related items rose or remained the same for 79 per cent of families polled in August. It decreased only for 21 per cent of them. This figure shows health remains an important consideration, according to the survey.

In terms of mobility, just 3 per cent of those polled said they are going out the same or less on short vacations or malls or restaurants. The overall mobility score stood at -8, an improvement over last month's score of -24. Around 88 per cent of respondents said they were happy that offices are starting to open. They felt productivity is better from the office. Around 83 per cent of those polled said they are not yet looking at travel or holiday this year. Only 15 per cent said they would only travel domestically.

Around 96 per cent said they'll implement Covid-appropriate behaviour this festive season. On the current euphoria around Sensex, 64 per cent of those who invest believe the BSE Sensex will cross the mark of 60,000 in the next few months. Around 29 per cent said it'll come down. Of those surveyed in August, 74 per cent said they don't invest in the stock market.

"As the festive season approaches, consumers are slowly stepping out -- as proven by increased numbers for non-essential spending and mobility. This should have a positive effect on the hospitality industry, which has been severely affected due to the pandemic. Tourism, however, continues to be a concern as 83 per cent of the respondents are still averse to travelling," Pradeep Gupta, CMD, Axis My India, said in a statement.

The survey was carried out via computer-aided telephonic interviews, with a sample size of 10,482 people from 28 states and 7 Union Territories. Around 72 per cent of the people surveyed were male and 28 per cent female.

Also read: Covid wave 'subsiding', normalcy returning slowly: Axis My India's Consumer Sentiment Index