Consumer sentiment continues to remain subdued in all categories apart from spends on discretionary products, according to India Consumer Sentiment Index (CSI) by Axis My India, released earlier this month.

However, spendings are expected to increase during the ongoing festive season, as data show that 21% of consumers plan to spend more during compared to last year. This sentiment has improved by 1 percentage point from last month. The consumer data intelligence firm tracks sentiments across five sub-indices — household spending, spending on essential and non-essential items, healthcare, media consumption habits and mobility trends.

In terms of big-ticket items, purse strings are still tight as only 6% of consumers plan to spend on jewellery, 5% on two-wheelers, 3% on four-wheelers and 1% on tractors or commercial vehicles. Also, only 2% plan to spend on home or plot or a commercial property.

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The survey further revealed that a majority of 78% plan to shop from local physical retail stores near their homes and 14% would shop from e-commerce sites like Amazon or Flipkart this festive season.

As compared to pre-Covid times, 43% consumers are buying smaller packs or sizes of their monthly groceries.

The survey further reveals 44% plan to buy apparel during Diwali while 8% each plan to buy white goods & mobile phones while 8% plan to buy either a 2-wheeler or 4-wheeler. The findings suggest 81% believe that shopping for family will be the ‘major expense’ during the festivities.

However, the overall consumer sentiment remains tepid. The October net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, from +10 last month, reflecting a decrease by 2 points.

Overall household spending has increased for 58% of families which reflects a decrease by 3% from last month. Spends on essentials like personal care and household items has increased for 44% of the families which is a decrease by 2% from last month.

Health and fitness continue to remain important for consumers amidst the festive season wherein expenses towards health-related items have increased for 37% of the families. Consumption of media remains the same as the last two months at 19%.

Mobility has increased for 6% of the families, which reflects a decrease by 1% point from last month.