Greek consumers are rediscovering the benefits of saving money, indicating both a slight improvement in household finances and a shift from the extreme consumerism of the pre-crisis years.
This is reflected in the third-quarter consumer confidence index compiled by Nielsen across 60 countries. Asked what they do with the money left after covering their basic needs, 30 per cent of Greeks said they save, which ranks top among their responses. In the same survey conducted in the first quarter of the year, the rate of those who said they saved the money remaining had come to 25 per cent, while two years ago it was just 20 per cent.
At the same time another 30 per cent said they have no money left after covering their basic needs, which while high is still below the percentage of those who gave the same response in 2013 (34 per cent) and 2012 (36 per cent).
The second most popular use of disposable cash was for the repayment of loans, credit cards and other debts (28 per cent against 31 per cent in the first quarter), followed by vacation spending (22 per cent against 20 per cent a year earlier), going out and entertainment (21 per cent from 18 per cent in 2013), high-tech gadgets (17 per cent from 13 per cent in 2013) and home repair and decoration (12 per cent). Two per cent said they spend their extra cash on a supplementary pension program while 1 per cent invest in stocks.
The return to the habit of saving and the decision by a greater percentage of consumers to spend more on vacations and entertainment are reflected in the consumer confidence index, which reached up to 56 points in the third quarter of the year, up one point from the April-June period. The index posted a rise for a third consecutive quarter, with men and young people being the most optimistic population groups.
Nevertheless, the perception that the country is in recession and will also be next year was greater in Q3 than in the previous quarter. Job security continues to be the biggest concern (47 per cent), growing by five percentage points from the second quarter of the year, followed by worries about the broader economy, debts and health.
The long-term recession has resulted in Greeks changing their buying habits more than any other European consumers.
Five in every seven Greeks (71 per cent) have turned to cheaper consumer products in order to reduce their household expenses, while most have reduced spending on going out (70 per cent), apparel purchases (67 per cent) and ready meals (60 per cent).