STOCKHOLM, November 24, 2022 /PRNewswire/ — Intrum’s annual report on consumer payments in Europe, released today, paints a bleak picture of the financial well-being and economic prospects of European consumers. With the cost of living rising rapidly, consumers are reducing their purchases of more durable goods and services to manage their household finances.
Intrum’s European Consumer Payment Report (ECPR), in which 24,000 European consumers report on payment behaviors and economic prospects, shows that record increases in the cost of living have triggered a wave of bills, forcing consumers to search widely for potential savings.
Two in three respondents (67%) say they would like to buy more durable goods and services, but the rising cost of living makes it difficult for them to do so. Six in 10 consumers are changing the way they spend money and an equal share say that due to inflation and the rising cost of living, they are now struggling to pay a premium for durable products. Fifty-four percent of respondents who will change their behavior say they plan to shop more at discount stores in the next year, which rises to 70 percent in Romania and Denmark.
Other sectors we can expect to be affected by changing consumer spending habits are non-profits and charities, with one in five of those changing their spending behavior saying they give less to charities over the next 12 months.
“The cost of living crisis has understandably pushed consumers who are struggling to make ends meet to seek discounts, with less room to spend price premiums on sustainable products. This may create additional challenges for governments, businesses and NGOs working to keep sustainable consumption and the green transition at the top of the list,” says Vanessa Söderberg, Global Sustainability Director at Intrum.
The ECPR findings, however, show that most consumers will continue to “punish” companies they believe have experienced biases, such as discriminating against consumers based on racial or socioeconomic background ( 61% say they would).
Other key findings from the 2022 Consumer Payments in Europe Report include:
Consumer confidence is weaker today than in the darkest days of lockdown
- Consumers are feeling more pessimistic about the future than at any time since we started tracking their responses in 2019.
- Unlike in recent years, rich countries and older consumers are more likely to be affected (63% of consumers in France and the UK are worse off, as are 62% of Gen Xers, compared to an average of 59%.)
Inflation and lack of confidence impact consumer habits
- Six out of 10 European consumers say they are increasingly aware of unnecessary costs
- Behavior-changing consumers are cutting back on meals to compensate for rising prices, which is bad news for the hospitality industry and others who were beginning to recover from the impact of Covid
- Three in 10 are struggling to make ends meet and expect not to pay a utility bill in the next 12 months. An equal share has already missed a payment in the past year.
- Consumers who expect not to pay their bills in the next 12 months say they are most likely to not pay their e-commerce and online store bills
The full European consumer payments report is available for download at intrum.com/ecpr2022
About the 2022 Consumer Payments in Europe Report
The European Consumer Payments Report 2022 is an instrument to gain insight into the daily life of European consumers, their spending and their ability to manage their household finances on a monthly basis. The report is based on an external survey conducted by Longitude in 24 developing countries. Europe. A total of 24,011 consumers took part in the 2022 edition of the survey. Fieldwork for the study was conducted between July and September 2022.
For more information, please contact:
Christine AndersonGlobal Director of Media Relations, Mature and Emerging Markets
+46 (0)705 85 78 18
[email protected]
Karine FranckGlobal Director of Media Relations, Strategic Markets and Scandinavia
+46 (0)709 78 72 74
[email protected]
The following files are available for download:
SOURCE Intrum