A survey conducted among Greeks showed that the consumer sentiment remained negative in the last six months, with low expectations for the next six-month period.
A 70% of consumers spend more than 80% of their available income on a monthly basis, while a 9% spend more than 100 % – practically borrowing somehow to cover its needs, a survey by the Association of Business and Retail Sales of Greece (HRBA) said on Tuesday.
The survey showed that spending on product purchases represented around 31% of total spending.
The main category of purchases was food/beverage (49% up from 41% in 2019), followed by restaurant (5.0% from 12%) and tickets/hotels (1% from 5%). On the other hand, electrical/electronics grew to 15% from 7% in 2019, reflecting Black Friday sales.
44% of consumers expect their spending on consumer goods to be lower in the first half of 2021, while only 10% expecting higher spending.
30% of consumers expect a decline in spending on services while an 18% an increase.
Higher spending is also expected in fixed spending (bills and taxation).
The survey, conducted on a sample of 916 consumers in December 2020.
PS no wonder as the lockdowns have paralyzed business activities and decreased people’s incomes.