Russians spending showed record growth

Even after deducting inflation, the level of spending was at the highest position in all the years of observation. Sociologists state the negative effects of increasing VAT. The consumer sentiment index still cannot reach the pre-crisis level.

The daily expenses of Russians in March showed a significant increase. As noted in the holding “Romir”, the figures for the past month have confirmed the trend that has emerged in previous years. However, in 2019, the “increase” was a record high and was immediately 11% of the February values.

“Even after deducting inflation, the level of spending was at the highest position in all the years of observation, except for the December peaks.” Apparently, the consequences of the increase in VAT, which continues to stimulate price increases, have an effect, sociologists explained.

At the same time, the amount of weekly expenses and the average check for one purchase at the store from April 1 to April 7, on the contrary, decreased to 4280 and 526 rubles, respectively, compared to the  week before last .

Against this background, the Levada-Center consumer sentiment index reflects negative trends in the economy. In March 2019, he was 98 points. Its indicators have improved since the beginning of the year, but remain lower than in March 2018 and still cannot reach the pre-crisis level.

The consumer sentiment index consists of estimates of the current state of affairs and expectations of future changes. A significant discrepancy between these indicators can speak about the process of overcoming the crisis, when expectations from the future come back to normal faster than real changes.

Interestingly, the index indicators in Moscow since the beginning of the growth of crisis sentiment in 2014 are on average below the national average. In March, the index difference between Moscow and Russia as a whole is minus 7 points.

Two-thirds of Russians reported that they live in austerity mode

Most Russians are focused on savings behavior. 69% of respondents to VTsIOM do not even consider the possibility of processing large loans.

Most people in Russia (68%) prefer to save money by reducing their daily expenses. At the same time, the share of such respondents over the last three years increased by 5%. This is evidenced by the results of a survey of VTsIOM, published on Thursday, April 11.

Only 23% of Russians named favorable for large purchases this time, while 55% said about the opposite position.

The majority of respondents (69%) consider it impossible to consider the issue of obtaining large loans. Only 15% hold the opposite opinion.

We add that it is expedient to spend a salary or a pension more expediently 20% of respondents.

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