Many Germans only buy the bare essentials

As of: October 11, 2024 2:09 p.m

The economic crisis is affecting consumer behavior. Savings are being made, especially when it comes to luxury expenses, and restaurant visits are also becoming less frequent. Even the gym is in jeopardy.

Consumers’ spending behavior adapts to the economic situation. The Funke media group reports, citing a new survey by the auditing firm EY, that more than one in three Germans (37 percent) say they now only buy the bare essentials. Respondents then want to save money primarily on luxury items (58 percent).

Many of those surveyed also limit themselves when it comes to the delivery of shopping (49 percent) and prepared food (48 percent) as well as gym memberships (43 percent).

The travel industry is decoupling

But other leisure activities are also considered from a cost perspective. According to the survey, many consumers plan to spend less money (40 percent) when visiting restaurants, cinemas or theaters. A good third also want to save money with streaming providers (34 percent).

The Germans seem to be making an exception when it comes to traveling, because despite inflation and the economic downturn, the German tourism industry grew in the summer. As of the booking status at the end of August, sales are ten percent higher than in summer 2023, the German Travel Association DRV announced yesterday.

Whether it will stay that way is of course uncertain: At the moment, the industry can still largely decouple itself from the poor economy and the weak consumer climate. “But we must not be naïve,” warned DRV boss Norbert Fiebig. “If the negative economic trends become more established, this development will not stop at the travel industry.”

Germans are predominantly pessimists

Overall, according to the report by the Funke media group, Germans are pessimistic about the future. Only a quarter of those surveyed (26 percent) believe that their own financial opportunities will improve in the coming year. However, 74 percent are of the opinion that the situation with regard to their own money will worsen or remain the same.

When it comes to the economic situation in Germany, the survey participants have little hope of a quick improvement. Only 31 percent of those surveyed think that the economy in this country will recover in the next twelve months. 36 percent then believe the opposite.

Retailers are also skeptical

In a mirror image, German retailers are also more skeptical about the future. The ifo business climate in retail deteriorated in September. Retailers assessed their current situation worse and have become more pessimistic about the next few months. “Consumers are uncertain about the economic policy environment. This means that no dynamic development in private consumer spending can be expected for the rest of 2024,” says ifo expert Patrick Höppner.

There is actually no improvement in sight at the moment: this week the federal government lowered its economic forecast. She now expects another year of recession in 2024. Economics Minister Robert Habeck announced on Wednesday that gross domestic product would shrink by 0.2 percent and not grow by 0.3 percent as previously expected. In 2023 there was already a minus of 0.3 percent.

source site

Related Articles