Consumer sentiment improves in March: Survey

New Delhi: Consumer sentiment improved to a 12-month high in March, with demand across household products showing a significant rise, according to a report by consumer data intelligence company Axis My India.

On Monday, Axis My India released the latest findings of the India Consumer Sentiment Index (CSI) that tracks consumer perceptions on a wide range of issues.

“The period of March reveals a significant improvement in consumption across household products. Sentiments associated with mobility highlight marginal improvement while sentiments associated with media consumption remain the same as last month. At an overall level, the Consumer sentiment is at the highest in last one year,” it said.

The survey was conducted among 10,086 respondents—67% of these were from rural India, while 33% of respondents were from urban India.

The index analyzes five relevant sub-indices including overall household spends, spends on essential and non-essential items, spends on healthcare, media consumption habits and mobility trends.

Overall household spending increased for 62% of families which reflects an 8% increase from the previous month. Meanwhile, spending on essentials like personal care and household items increased for 48% of the families. Spends on non-essential and discretionary products like air conditioners, cars, and refrigerators increased for 13% of families reflecting an increase of 5% from last month. Spending on such products remained the same for 82% of the families.

In all, 18% of those surveyed said they are planning to buy new air-conditioners or refrigerators or replace an old one this summer season. However, 65% remained cautious about such expenses.

Meanwhile, consumption of health-related items remained the same for 46% of the families, while decreased consumption is witnessed among 16% of those surveyed, it said.

Of those surveyed, 22% of the families said they increased their consumption of media. Consumption remains the same for a majority of 55% of families, it added.

As mobility improves and travel restrictions lift, 89% of families said that they are spending on short vacations and resuming visits to malls and restaurants.

The survey for march tracked consumer sentiment with regard to current world affairs, IPL matches apart from travel plans for the upcoming summer season.

“With mounting geopolitical tensions, opening up of economies and diminishing fear of Covid-19, Indian consumers are showcasing confidence and overall sentiment is at the highest in last one year,” said Pradeep Gupta, CMD, Axis My India.

Increasing expenditures across categories, domestic travels and coming together of IPL further captures the sentiment of an optimistic consumer. It reflects their intent for an improved life and lifestyle, Gupta said.