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Scant growth in jobs, but consumer spending buoyant: Survey
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.
New Delhi: 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 percent of the 7,221 people who were covered in LocalCircles' 'mood of the economy' poll said they will be spending big this festive season.
"The 31 percent is a relatively high percentage as most of these purchases are high-value items. This does not include the normal purchases of items like clothing, fireworks or such that are done normally during the coming festive season," the report said, adding that "this shows there is buoyancy in the economy when it comes to spending".
The poll was to gauge 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 percent said they expect a moderate upmove (8-10 percent) and 26 percent do not expect any rise at all while 14 percent peg it in the range of 10-15 percent.
On salary hike, 32 percent respondents expect their salaries to go up to 8 percent while 36 percent do not see a salary hike in the coming year, the survey said, adding that "salary expectations vary as per industry... With no clear trend".
The job market outlook is not that bright as 27 percent think that it is the same as last year and this might also be the reason why even a larger 47 percent are 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.