NEW DELHI: Even as regular monthly household expenses shot up post the Covid-19 outbreak, urban consumers have managed to keep their savings intact, finds a Nielsen survey. Nearly 60 per cent of the 1,190 respondents surveyed across 12 cities stated that the pandemic has led to a fall in income but regular expenses have increased. This, in turn, has disrupted household budgets, forcing consumers to cut investments and save more to ensure liquidity for future spends.
“Proportion of regular expenses have increased among lower (earning less than `50,000 per month) and mid income (50-100k) households, however they are allocating monthly incomes towards maintaining savings,” said Nielsen in its survey titled ‘COVID-19 shifts in consumer behaviour edition. In fact, households with mid and high income have seen their savings grow in April, while lower income households have managed to keep their savings untouched. Cumulatively, savings have seen a growth of two per cent in tandem with a rise in 3 per cent rise in expenses and a four per cent dip in investments, the survey noted.
Nielsen also pointed out that “only 28 per cent said they feel confident to go ahead with their planned expenses, while 24 per cent said they will suspend their plans for a full year.” According to Sameer Shukla, west market leader, South Asia, Nielsen Global Connect, only consumers buying furniture and durables are willing to go ahead with the plan.
The fast-moving consumer goods industry recorded a 34 per cent decline in sales in April 2020 as compared to a year-ago period due to the nationwide lockdown, it said. The decline was led by a sharp drop in sales clocked by traditional trade channels consisting of neighbourhood and kirana stores.