Consumers to cut festive spending by 43%: ASSOCHAM

Diwali is likely to be a subdued affair this year as middle and lower income families cut their festive spends by 43%, a survey by industry body ASSOCHAM has said.

The study has attributed this reduction in spending to high prices of daily food items, education costs and grim job market scenario.

Majority (56%) of the respondents said they planned to spend less, citing increasing prices of food items as one of the key reasons. Another 21% said value of their savings had gone down, while 15% said they were setting aside their savings for big purchases. A relatively smaller number (8%) held rising EMIs (equated monthly installments) responsible for the slashing their festive budget. Last Diwali, middle and lower middle income families had said they would spend close to half their salary on shopping, sweets, gifting and so on, ASSOCHAM said.

The survey, conducted in October, polled 1650 respondents across Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Dehradun and Chandigarh, among other cities. In curtailing festive spends, Delhi ranked first among the cities, followed by Ahmedabad, Mumbai and Chandigarh.