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Consumers stay on in saving mode

Having witnessed the global meltdown, albeit at arm’s length, the Indian consumer is unwilling to loosen his purse strings despite the optimism in the air.

business Updated: Jan 13, 2010 20:44 IST
HT Correspondent

Having witnessed the global meltdown, albeit at arm’s length, the Indian consumer is unwilling to loosen his purse strings despite the optimism in the air.

A recent MasterCard survey on consumers’ saving priorities found that 85 per cent of Indian consumers are unwilling to increase their spendings. And contrary to the perception that the youth spend more, 33 per cent of those surveyed between the age group of 18-44 are planning to save more in the next six months, it found.

However, only 25 per cent of those between 45-54 years and 22 per cent of over 55 years have the same outlook on saving.

The mood for saving does not seem to have a gender bias: almost the same number of male and female respondents of the survey —31 per cent and 30 per cent respectively — planning to hold on to their wallets.

Among age groups, those in the 18-29 bracket are the most concerned about saving for a rainy day, at 87 per cent. Thirty-nine per cent want to save 1-10 per cent of their salary, and an equal number want to save 11-20 per cent of the salary in coming six months.

Investment was top the reason for saving at 54 per cent, followed by property upgrade (38 per cent) and purchase of consumer electronics (25 per cent). The savings trend is common across Asia/Pacific, West Asia and Africa, with over 40 per cent respondents planning to up savings, the survey said. About 74 per cent cited uncertainty over economy as the reason for maintaining or increasing level of saving.