Level of Income: Higher income level means higher consumption than lower income levels.
Income Distribution: A highly unequal income distribution leads to lower consumption while equal distribution leads to higher consumption.
Attitudes of People: Some people are more saving minded and thus spend less.
Rate of Interest: High rates of interest encourage saving and discourage consumption.
Taxation Levels: Higher rates and levels of direct taxes mean less disposable income and thus less consumption.
Expectation about supply and prices in future too affects the consumption decisions.
A rise in wealth reduces motivation to save and encourage to spend more. A fall in wealth may increase motivation to save and thus adversely affects consumption.
