Russian households are currently running in "safe mode" where they are trying to save more than they are spending. The situation has improved somewhat in that people are no longer saving across the board, but when it comes to durable goods, people are still trying to do without them.
Household spending in Russia is decreasing slower than income
"Spending is decreasing slower than income. At the same time, a new equilibrium has been achieved in the consumer market as a whole. The Ministry of Economic Development expects that in 2017 the average household income in Russia will go up 1% while retail sales, or purchases of goods and services, are expected to go up by almost 2 %," Analytical Center expert Alexander Golyashev said on the Consumer Society show on RBC-TV.
In 2016, household spending fell by 5 % while income fell by almost 6 %. "In other words consumer spending declined less than household income. In effect, spending even increased, albeit not much," the correspondents said. "In the meantime, if we look at what consumer spending is made up of, the share of groceries in it has reached almost 50 %, but the Russians are not buying more expensive items yet."
In early April, the Analytical Center published the Personal Consumption of Goods and Services bulletin, which analyzes consumer behavior in Russia in 2016.