Indian household expenditures record 58% high in August 2023

Axis My India, a notable leader in consumer data intelligence, has unveiled its latest report on the India Consumer Sentiment Index (CSI) for August 2023. According to this report, household expenditures have increased for 58% of households, signifying a 2% uptick when compared to the preceding two months. This surge is the most significant observed in the past five months.

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Axis My India, a prominent player in the field of consumer data intelligence, has released its most recent report on the India Consumer Sentiment Index (CSI) for the month of August 2023. As per the report, household spending has risen for 58% of families, marking a 2% increase compared to the previous two months and representing the highest surge observed in the past five months.

This report offers valuable insights into the ever-changing landscape of media consumption, consumer behaviour, and the prevailing sentiments regarding data privacy.

The August net CSI score, determined by subtracting the percentage decrease in sentiment from the percentage increase, stands at +8, representing an improvement compared to the previous month’s score of +7. The sentiment analysis encompasses five key sub-indices: Overall household spending, expenditure on both essential and non-essential items, healthcare spending, media consumption patterns, and trends in entertainment and tourism.

Expenditure on necessities such as personal care and household items has climbed for 44% of households, marking a substantial 13% upswing compared to the previous month and representing the highest increase observed in the past five months. The net score, previously at +18 last month, has now surged to +23 this month, reaching its highest point in the last five months. Notably, essential spending has shown notable increases in southern states, including Telangana (67%), Andhra Pradesh (63%), and Tamil Nadu (61%).

Pradeep Gupta, chairman and MD, Axis My India stated, “Amidst the dynamic landscape of India’s retail sector, a compelling panorama of consumer trends emerges, signifying a transformative shift. With a burgeoning sense of optimism, households witness a noteworthy increase in spending, painting a vibrant picture of economic vitality. Essential commodities and well-being take precedence, reflecting a conscious and purposeful approach, while discretionary purchases find their place within mindful choices”.

Source: axismyindia.org

As per the key findings from the survey, expenditure on non-essential and discretionary items such as air conditioners, cars, and refrigerators has risen for 6% of households, marking a 1% uptick from the previous month. Notably, discretionary spending has seen a significant surge, particularly in the states of Meghalaya (17%), New Delhi (13%), and Odisha and Tamil Nadu (11% each).

Whereas, expenditures on health-related items like vitamins, medical tests, and nutritious food have risen for 33% of households, marking a 3% increase compared to the previous month. The health score, which takes on a negative connotation (meaning lower spending on health items is considered better for sentiment), stands at -14 this month. The consumption of health-related products has notably increased, particularly in the states of Punjab (44%), Rajasthan, and Chhattisgarh (42% each).

The survey was conducted through Computer-Aided Telephonic Interviews and involved 5,092 participants from 35 states and union territories. Among these, 65% were from rural areas, and the remaining 35% were from urban areas. In terms of regional distribution, 22% hailed from Northern regions, while 25% were from Eastern parts of India. Additionally, 28% and 26% represented the Western and Southern regions of India, respectively. The survey also had a gender distribution of 61% male respondents and 39% female respondents. Among the two largest age groups in the sample, 31% fell into the 36 to 50-year-old category, and another 31% were in the 26 to 35-year-old age group.