67% reduced spending, know what people are buying
Due to the lockdown, there is a big change in the way spending is done in the country. According to a survey conducted on Indian consumers, 67 percent of the people of the country have cut their expenses. According to consulting firm McKinsey, 54 per cent of the people in the country have seen a decline in earnings. Of these, a large number of people have lost their jobs or cut salary. Due to this, more than two-thirds of the people of the country have cut spending. People are spending incessantly on needs like grocery, household necessities, entertainment. However, there has been a big decline in procurement of non-essential items.
There has been a significant decline in spending on clothing, accessories, footwear, liquor, snacks, online food, electronics, personal care services, purchase of vehicles and out-of-home entertainment. The big reason for this is the lockdown restrictions. Even after this, due to the decrease in income, people have changed their spending patterns on a large scale.
This figure is also encouraging because in the last week of March, only 52% of the people surveyed believed that the economy would bounce back soon.