Increasing industrial unemployment and uncertainties about the future are having their foreseeable effect on household consumption in Germany: 44 percent of the population are consuming less than they did last year. They mostly cite rising consumer prices as well as political and economic uncertainties as the reasons. This matches the fact that businesses are cutting back on investments because of economic uncertainties.
Depending on the product category, up to 74 percent of purchasing decisions are influenced by discounts. This is shown by a study conducted by the Boston Consulting Group (BCG). According to the study, consumer sentiment has continued to deteriorate. 64 percent view the economic situation negatively. Consumers are paying closer attention to prices than they did a year ago. Financial pressure is high. 81 percent have to pay closer attention to how much they spend. Two-thirds are worried that their money won’t last.
