Consumption: Majority of older people pessimistic – that’s a bad omen

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The return of “German Angst” endangers the economy

A passer-by with shopping bags: Germans are shopping noticeably less

A passer-by with shopping bags: Germans are shopping noticeably less

Source: dpa/Daniel Bockwoldt

After a long delay, the Ukraine war has had an impact on consumer sentiment. For the first time in six years, Germans are pessimistic about the future. However, there are considerable differences within the population – also by federal state.

Dhe older generations in Germany are more pessimistic about their financial future than they have been for a long time. This is the result of a representative survey by the opinion research institute YouGov, which WELT AM SONNTAG received in advance. For the first time in six years, the majority of those over 50 are negative. This has an impact on consumer demand.

What is striking is that more young people than older people see their real situation deteriorating. They actually have to put their consumption wishes on hold much more often. Nevertheless, the younger ones are more optimisticthat things will go uphill for them financially in the future.

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The pollsters at YouGov collect the data for their “Liquidity Barometer” once a year for the team bank, the specializing in consumer credit is. “The effects of the Ukraine war have had a clear impact on people’s personal finances over the past twelve months,” analyzed Teambank boss Frank Mühlbauer.

High inflation is a big part of that. 38 percent of those surveyed state that their financial situation has deteriorated over the past twelve months, only 20 percent see an improvement. At the beginning of 2022, there were already significantly reduced expectations due to the Corona crisis.

This pessimism is weighing on the economy: According to the economic forecast presented by the economic institutes this week, consumption is a necessary pillar for the expected slight economic growth in the current year. But recently, the willingness to spend has already decreased noticeably.

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In the first quarter of 2023, growth-spoiled online retail lost 15 percent of its sales compared to the same period last year. “Purchases that are not urgently needed, such as fashion, jewelry and entertainment items, will be deferred,” said the industry association BEVH.

According to the YouGov survey, people in Hamburg are the most confident. In contrast, the most negative mood prevails in Mecklenburg-Western Pomerania and Saxony. The tighter cash position has a practical consequence: more people use an expense book or a corresponding app.

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In order to display embedded content, your revocable consent to the transmission and processing of personal data is required, since the providers of the embedded content as third-party providers require this consent [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the switch to “on”, you agree to this (which can be revoked at any time). This also includes your consent to the transfer of certain personal data to third countries, including the USA, in accordance with Art. 49 (1) (a) GDPR. You can find more information about this. You can withdraw your consent at any time via the switch and via privacy at the bottom of the page.



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