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Scant growth in jobs, but consumer spending buoyant: Survey

The survey doesn't include purchases of items like clothing, fireworks that are done normally during the festive season

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Press Trust of India  |  New Delhi 

A woman looks at items inside a discount drug store at a shopping district in Tokyo. Photo: Reuters

Contrary to the perception of stunted growth in job openings or salaries, there is buoyancy in the economy when it comes to spending as one-third of the population is expected to go in for high-value items this festive season, says a survey.

Nearly 31 per cent of the 7,221 people who were covered in LocalCircles' 'mood of the economy' poll said they will be spending big this festive season.

According to the report, 31 per cent is a relatively high percentage as most of these purchases are high-value items. It does not include purchases of items like clothing, fireworks or such that are done normally during the coming festive season. This indicates a buoyancy in the economy when it comes to spending.

The poll was to gauge the mood of the economy with respect to four primary parameters — people's expectation about price rise, festive season spending, salary hike and the current job scenario.

About probability of price firming up in the coming year, 53 per cent said they expect a moderate rise of 8-10 per cent and 26 per cent do not expect any rise at all while 14 per cent peg it in the range of 10-15 per cent.

On salary hike, 32 per cent respondents expect their salaries to go up to 8 per cent while 36 per cent do not see a salary hike in the coming year. Also, salary hike varies with industry and there is no particular trend.

The job market outlook is not that bright as 27 per cent think that it is the same as last year and this might also be the reason why even a larger 47 per cent of respondents were not looking for a new job.

"People's expectation about price rise is higher than what experts believe... In coming years. This is especially true for essential food items," said K Yatish Rajawat, Chief Strategy Officer, LocalCircles.

He said further the debate on interest rates, therefore, should be tempered and take into account the perceived notion that people are not seeing any great rise in job opportunities or salaries.

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First Published: Wed, October 05 2016. 16:07 IST
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