Germans More Pessimistic on Economy, Price Worries Drive Spending Shifts
German Consumer Sentiment and Economic Outlook
By Maria Martinez
Survey Reveals Growing Economic Pessimism
BERLIN, June 9 (Reuters) - Germans are more pessimistic about the economy than Europeans overall, prompting many consumers to save any extra income, according to a Boston Consulting Group study seen by Reuters on Tuesday.
The consumer sentiment survey found that 64% of the roughly 1,800 respondents in Germany rated the current economic situation as poor, above the European average of 56%.
Impact on Spending and Savings Behavior
Four in 10 German consumers said they would save rather than spend any additional income, reflecting persistent concerns over inflation, energy costs and personal finances in Europe's biggest economy.
Concerns Over Inflation and Energy Prices
The BCG said 75% of German respondents saw high energy prices as a major burden, while 72% cited inflation. Some 78% expected prices to rise further over the next six months and around a third anticipated declines in income or savings.
Price Sensitivity and Shifts in Shopping Habits
Discounts and Private Labels Influence Purchases
PRICE SENSITIVITY IS SHAPING SHOPPING HABITS
Depending on the product category, discounts influence up to 74% of purchasing decisions, the study showed. In food, 55% of German consumers often or almost exclusively buy retailers' own-brand products, compared with a European average of 39%.
Sustainability Takes a Back Seat
Sustainability has lost ground as a purchasing criterion, with only 17% of German consumers willing to pay more for sustainable products.
(Reporting by Maria Martinez and Christian Kraemer, Editing by Madeline Chambers)
