Survey Suggests Potential Increase in Consumer Spending During Festive Season

A survey conducted by the UBS Evidence Lab, encompassing 1,500 respondents aged 18 to 54 from across India, has revealed that despite inflationary concerns, Indian consumer spending is expected to rise during the upcoming festive season. This optimism is driven by increasing income levels among affluent consumers, with 70 percent of those surveyed anticipating higher festive spending, while 18 percent plan to maintain their current spending levels.

The UBS Evidence Lab arrived at this conclusion as 73 percent of respondents reported stable or increased incomes, with only 11 percent expecting minimal expenditures during the festive season. The surveyed individuals were categorized as A (upper) and B (upper-middle class), and their spending decisions significantly influence the country’s demand dynamics.

Furthermore, 70 percent of respondents believe that their income may continue to grow in the coming year, and approximately 65 percent noted that their household income has outpaced inflation.

Regarding shopping habits, 46 percent reported purchasing fewer personal care and packaged food products compared to the previous year, with 16 percent observing no significant changes. Home care product purchases remained relatively neutral compared to the previous year. Additionally, the survey found that 58 percent of consumers plan to buy a 2-wheeler vehicle within the next 2 years, while 55 percent purchased one in the previous year.