Almost three quarters of people in Germany are worried about a possible economic downturn and are adjusting their purchasing behavior. The majority can imagine restrictions in the event of a recession, especially when buying new clothes (58 percent) and spending on vacation (55 percent) and leisure activities (52 percent), according to a YouGov survey commissioned by the management consultancy Simon-Kucher & Partners revealed. Almost every second of the 2035 consumers surveyed would also say they would go to the restaurant less often (49 percent).
Energy and food prices in particular have risen drastically in recent months. According to preliminary official information, consumer prices in Germany in October were 10.4 percent higher than in the same month last year. This is the highest value for about 70 years. In the survey, 60 percent of respondents said they intend to spend less and reduce their consumption in the face of rising prices.
“With everyday products, there is a lot of scope for a price increase. Customers get used to higher prices quite quickly,” said the co-head of Simon-Kucher & Partners, Andreas von Gathen. “However, many consumers have a fixed budget for weekly shopping that they cannot exceed. They are forced to save and therefore turn to cheaper alternatives.”
According to the survey, companies are also preparing for a recession. According to their own statements, 60 percent of the 520 companies surveyed have at least a partially developed strategy for reacting to an economic downturn. After all, a third (33 percent) are not prepared.
It could become even more expensive for customers in the future: According to the survey, every third company (32 percent) would increase prices in the event of a recession. (dpa)