The high price increases of recent years continue to exert enormous pressure on domestic households. More than a third, namely 36 percent, have therefore severely limited their consumption. This is particularly felt by the hospitality industry, but also by the fashion retail sector, according to a recent study. At the same time, the potential for savings on fixed costs is higher than it has been for a long time, according to the comparison portal Durchblicker.
Consumer uncertainty remains high. Recent high inflation weighs on the stock market, and the bleak economic outlook weighs on people’s minds. Four out of five respondents are therefore worried about the future and are cutting back significantly on their spending. This year, 91 percent have put the brakes on this. More than a third, namely 36 percent, have even severely restricted themselves.
Austrians save on gastronomy, fashion and travel
Restaurants, cafes and bars are particularly hard hit, as 76 percent of households are currently spending less there. Fashion and travel follow slightly behind in second and third place (see graph).
Furniture and upholstery are also becoming increasingly redundant for Austrians. While in 2023, ‘only’ 45 percent were cautious about buying household items, sofas, etc., this is currently 60 percent. The red pencil is applied to food less often than before.
Four in ten people need credit for unplanned expenses
Although the inflation curve has been heading downwards since the summer of 2023, 89 percent of households will see an increase in fixed costs this year. “At the same time, financial buffers are likely to have shrunk, as at least two in five Austrians say they can no longer cope with unplanned expenses such as repairs or purchases of larger household appliances without credit,” explains Durchblicker boss Martin Spona.
Reduce fixed costs and save up to 4,300 euros
If you are struggling with rising costs or want to optimize your expenses, you should definitely take a look at your fixed costs. There is more money in it than there has been in a long time. Currently, a family household that always has a contract with the most expensive provider can save up to 4,300 euros by switching to the cheapest provider. In concrete terms, this is a maximum of 1,300 euros for gas, a maximum of 900 euros for electricity or a maximum of 700 euros for car insurance.
The greatest willingness to change is in mobile communication. Here, six out of ten have already changed providers at least once. When it comes to electricity, one in two people has already switched. Spona: “The study shows once again that the potential for optimising fixed costs is far from exhausted.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
