Financial confidence is growing - but a frugal Christmas
Many Christmas trees in Germany are likely to contain fewer or at least smaller gifts this year: around one in two people (47.3%) are cutting back on their festive spending, according to a YouGov survey commissioned by Postbank, part of the Deutsche Bank Group.
According to 21% of the 2120 adults surveyed, they plan to spend "significantly less" money on Christmas presents than last year, while 17.4% plan to spend "slightly less". According to the survey conducted from October 27 to 30, 8.9% cannot afford to spend money on Christmas presents at all.
The general rise in prices for energy and food, among other things, has been a burden on private households for months. According to surveys, many people are being forced to cut back on their consumption because there is just enough money for essential everyday expenses. The annual inflation rate has at least fallen recently.
In the latest survey, just under a third of respondents (32.4%) stated that they were planning to keep their Christmas budget unchanged this year. 4.1 percent even plan to spend more money on presents than the year before.
Growing financial confidence
Looking ahead, confidence is growing among many: compared to last year's survey, significantly more people are now positive about their financial situation in the coming year. The proportion of those who are "very optimistic" or at least "somewhat optimistic" about the coming year increased from 25.2% to 42.9%. The proportion of those who believe that their finances will develop negatively for them fell from 62.1% to 45.4% compared to the 2022 survey.
According to Ulrich Stephan, Chief Investment Strategist for Private and Corporate Clients at Deutsche Bank, the significant drop in the inflation rate and the easing of the energy crisis are among the reasons for the change in sentiment. "There are, of course, a variety of challenges both in Germany and around the world. Nevertheless, gas storage facilities are well filled and a shortage in the coming winter seems unlikely," explained Stephan. "Inflation has also fallen back to 3.8 percent in Germany. That is still high, but the direction is the right one. In this respect, many challenges remain, but the problems are not acute at the moment."
Despite the growing financial confidence, many consumers are opting for a frugal Christmas due to rising costs of essentials like energy and food. Customs at Christmas might see a shift with fewer or smaller gifts under the tree, as indicated by the survey results.
Source: www.dpa.com
