Germans more pessimistic than European peers as price worries reshape spending, BCG says

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Germans are more pessimistic about the economy than Europeans overall, prompting ​many consumers to save any extra income, according ‌to a Boston Consulting Group study seen by Reuters on Tuesday.The consumer sentiment survey found that 64% of ​roughly 1,800 respondents in Germany rated the current economic situation as poor, above the European average of 56%.Four in 10 ​German consumers said they would save rather than ​spend any additional income, reflecting persistent concerns over inflation, energy costs and personal finances in Europe’s biggest economy.The BCG said 75% ​of German respondents saw high energy prices ​as a major burden, while 72% cited inflation. Some 78% ‌expected ⁠prices to rise further over the next six months, and around a third anticipated declines in income or savings.PRICE SENSITIVITY IS SHAPING SHOPPING HABITSDepending on the product category, discounts influence up to 74% of purchasing decisions, the study showed. In food, ​55% of German consumers often or ​almost ⁠exclusively buy retailers’ own-brand products, compared with a European average of 39%.Sustainability has lost ground as a ⁠purchasing ​criterion, with only 17% of ​German consumers willing to pay more for sustainable products.