One in two consumers will reduce their spending on product purchases in the next six months, according to the results of the retail consumer climate conducted by the Business & Retail Association of Greece with the scientific support of the ELTRUN laboratory of the Athens University of Economics. The survey took place in the period 3-6 December 2023 on a sample of 950 consumers.

In more detail, the retail consumer sentiment index in December 2023 stood at -52, much lower compared to the base month, October 2019. Also, it is reduced compared to the June 2023 measurement by 3 points but increased compared to the corresponding November 2022 measurement by 9 points. According to SELPE, this development has to do both with the current expectations of consumers for the near future, as well as with the current situation of consumers.

The current situation sub-index showed a change from -46 to -49, while the expectations sub-index corrected more from -54 to -57, however, remaining low. In practice, what is recorded are both low expectations, but also burdened finances for consumers, with a better course of improvement for consumer expectations (which remain negative).

As reflected in the individual questions of the survey, despite the noticeable improvement in the percentages, consumers consider that it is still not a satisfactory period to make large purchases for the home, both themselves and in general. Accordingly, spending expectations are down, but mostly related to non-retail spending. In particular, 49% estimate that in the first half of 2024 spending on utility bills will be increased. Also, 43% estimate that spending on product purchases in the first half of 2024 will be reduced, while only 20% that it will be increased. The picture is a little better for services (tickets, catering), for which a decrease from 28% of consumers is estimated, an increase from 18%. Incremental is the measurement in relation to taxation for which 60% estimate that it will remain unchanged, 12% that it will show a decrease and 28% an increase. The data shows that consumers expect a decrease in spending to meet their basic needs and a small increase in spending on entertainment and worry about other fixed expenses.

According to consumers, spending on bills is, along with product purchases, their biggest expense as a percentage of their income. Specifically, shopping expenses make up 30% of expenses, while account expenses make up 29%. In relation to the rest of the expenditure categories, a slightly increasing trend is recorded, but expenditure on bills, rent and taxes now represents 2/3 of the total family income. It is noted, that for another measurement the percentage of expenses is estimated by the consumers themselves to exceed their disposable income by approximately 20%. This measurement is attributed to a more general phenomenon in recent years of expenditure exceeding income, but also of reduced declaration of income.