The 'Mood of the Consumer' survey collected responses from over 20,000 people, of which 64 percent were from metro/tier-1 cities while 63 percent of the respondents were men.
Income growth has not kept pace with rise in expenses for nearly 73 percent of homes, according to a survey by citizen engagement platform Local Circles.
The 'Mood of the Consumer' survey collected responses from over 20,000 people, of which 64 percent were from metro/tier-1 cities while 63 percent of the respondents were men.
The survey however noted that consumer sentiment appears to be largely positive, and spending is expected to be healthy over the next three months.
The salary increments and bonuses received in April and May, and the re-election of the BJP-led NDA government have given a boost to consumers.
"Both these things together, have led to positive sentiments amongst consumers as well as the market, and the consumer spending is expected to be robust in the next few months," the survey noted.
Also, around 51 percent of the respondents are not planning to make big purchases (above Rs 25,000) in the next month.
Travel, white goods, and gadgets seem to form the bulk of consumers’ expenses. 22 percent said they might spend on travel in the next quarter, 20 percent said they would purchase white goods and only 8 percent said they would a home, jewellery, or vehicle.
"Gadgets like mobiles and laptops have been popular purchase items over the past few years and consumers have shown a tendency to upgrade them often. With disposable incomes increasing, travel has also emerged as an area when more and more consumers have been spending," the report said.
Consumers are not optimistic about their purchasing power, since only 44 percent think their salary will increase in the next year.
