Consumers - Survey: Many people are worried about 2024
According to a survey, people in Germany are predominantly pessimistic about the coming year. A good 95% of the 1,200 consumers surveyed on the first Saturday of Advent expect the general economic situation in Germany to deteriorate in 2024, according to the management and technology consultancy BearingPoint.
According to the survey, many continue to take a critical view of their own household's financial situation. Around a third (31.2%) of respondents aged 15 and over surveyed on December 2 do not expect any improvement in this area. Around 40% even expect their own financial situation to deteriorate further.
Rising prices burden private households
Rising prices for energy and food have been weighing on consumers for months. Although the annual rate of inflation has recently fallen significantly, many people do not trust the peace, as the data collected with the support of Worms University of Applied Sciences and the IIHD trade institute based there show: Around 97 percent of respondents expect consumer prices to rise in 2024, with around 46 percent even expecting a sharper increase than recently.
Economists, on the other hand, expect the inflation rate to fall further following an increase in December. In November, consumer prices in Germany were 3.2% higher than in the same month last year. Inflation thus reached its lowest level since June 2021, when it stood at 2.4%. At the beginning of 2023, there was still an eight before the decimal point.
Many spend less on Christmas presents
The majority of participants in the BearingPoint survey (around 58%) are entering the new year with fears, negative feelings or mixed emotions. This also has an impact on this year's Christmas business: around 13% see the festive season as an opportunity to be generous once again. Almost 10 percent of those surveyed said that they wanted to give more this Christmas for the last time, as they expect to have less money available next year. Just under 20 percent of consumers surveyed want to spend less money on Christmas presents this year because they believe it is advisable to save money.
According to a YouGov survey commissioned by the comparison portal Check24, a third (32%) of consumers in Germany are planning to spend less money on gifts, festive meals and restaurant visits this Christmas than last. 64% of the 2027 participants in this survey, which was conducted between November 29 and December 1, said they plan to limit their Christmas spending to a maximum of EUR 500. 42 percent of respondents plan to spend up to 250 euros.
"The sales prospects for this year's Christmas business only appear positive at first glance. Ongoing inflation is causing a price-adjusted decline in sales," said BearingPoint study author Kay Manke. According to this forecast, the retail sector in Germany is likely to generate nominal sales of 89 billion euros this Christmas, 1.8 percent more than in the previous year. Adjusted for price increases (in real terms), however, a decline of 1.4 percent to 75.1 billion euros is expected.
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- Despite concerns about inflation, some consumers in Frankfurt are still trying to enjoy the festive season, with around 13% viewing Christmas as an opportunity to be generous.
- The economic situation in Germany, as reported in a survey, has caused many consumers to reconsider their needs, with almost 10% planning to give more this Christmas for the last time due to financial concerns.
- According to economists, inflation, which reached its lowest level since June 2021, is expected to fall further in 2023, providing some relief for consumers managing their finances in Frankfurt and other cities in Germany.
- The rising costs of food and energy have been a significant burden for many consumers, and a survey conducted at Worms University of Applied Sciences shows that 97% expect consumer prices to rise in 2024, with around 46% expecting a sharper increase than recently.
- The survey results indicate that most consumers in Germany will be spending less on Christmas presents this year, with 64% planning to limit their festive spending to a maximum of €500 to manage their finances more carefully.
Source: www.stern.de
