High prices and the situation of economic uncertainty are affecting the level of consumption of Spaniards who, facing the end of the year, plan to spend less than what they had done until now. This is indicated by the latest consumer outlook report published this Friday by Kantar Insights, which indicates that 38% of Spaniards will reduce their level of consumption until the end of the year, almost two out of every five.
The consulting firm assures that the population is aware of the current global economic situation, so in addition to those who will reduce their consumption, there is another 58% who will maintain their level of spending. In this way, according to the Kantar report, only 4% of the population has sufficient economic capacity to increase their consumption between now and the end of the year.
In a context of high inflation – in September it rose again to 3.5% for electricity and fuel – the uncertainty regarding whether public aid will continue in 2024 – reduction in VAT on electricity and gas or basic foods, among others—do not help boost consumption.
Despite this, Kantar points out that respondents do not perceive a climate of crisis and that consumers are experiencing the situation “without special drama”, opting for a “patient and cautious” attitude, perhaps due to the experience of the last decade, they say. from the consulting firm. In this sense, the opinion on employment stands out, since 89% of Spaniards believe that their job is not at risk, although a significant 39% believe that unemployment will increase in the next six months.
This, transferred to personal finances, translates into 70% of people who trust that their personal income will be maintained or improved, compared to only 7% who think it will decrease. Faced with this uncertainty about what may happen, security is sought.
Thus, the valuation for the purchase of financial products such as pension plans or funds improves and only training activities and drugstore products remain in positive numbers, followed by beauty products, the latter historically perceived as self-gratification products in difficult times. , says the report.
In this sense, the assessment of the moment to make large expenses, loans or mortgages, housing, cars, etc., continues to be negative.
Thus, after the positive trend seen in the last year, in the third quarter of 2023 the Consumer Confidence index evolves negatively.
2023-10-07 02:24:15
#Spaniards #reduce #consumption #year
