Greek consumers gloomiest on planet

Greeks arethe most pessimistic consumers on the planet according to a recent survey by Nielsen research company that found the consumer confidence index in the country had dropped to 35 points in the last quarter of 2012.

That is the lowest level among a total of 58 countries surveyed and 11 points lower than the same period last year in Greece.

Four out of 10 Greeks told the same survey that they no longer have any disposable money left after covering their basic needs, which is the highest rate ever recorded in Greece and the biggest in the October-December period in Europe. A year earlier (in Q4 2011) that rate had stood at 34 percent and in Q4 of 2010 it had been at 25 percent.

Even in cases where consumers do have some money left to spend, it goes mostly toward the payment of loan and credit card installments (31 percent) or savings (22 percent). Only a very small number of consumers use their disposable income for entertainment, vacations and buying clothes, which helps to explain the turnover slump in the sectors of food catering, domestic tourism and apparel stores.

With unemployment soaring to unprecedented levels, it comes as no surprise that finding and/or keeping a job constitutes the greatest concern among Greeks, which, at a rate of 44 percent, is among the highest in the world. The state of the economy ranks second, at 38 percent, debts are third at 26 percent and the increasing level of utility bills are fourth, on 21 percent.

Shrinking disposable incomes combined with insecurity have led to a change in Greeks’ shopping habits, with 77 percent stating they have curtailed spending on entertainment outside the home, 67 percent saying they choose cheaper commodities (mostly own-label supermarket products) and more than half (54 percent) say they have cut down on fuel and electricity.

In total, the global index came to

have some money left to spend, it goes mostly toward the payment of loan and credit card installments or savings. Only a very small number of consumers use their disposable income for entertainment, vacations and buying clothes, which explains the turnover slump in food catering, domestic tourism and apparel stores. 91 points in the last quarter of 2012, dropping by one point from the previous quarter.

On a more positive note, the commercial property market (offices, shopping malls and industrial real estate) will start to rebound within the year according to a forecast by Colliers International Greece.

One of the positive factors noted by the property services company regards the increase in investment interest from abroad. Colliers sees state tenders for the sale or utilization of public properties becoming the catalyst for the strengthening of the activity of foreign investors in the local sector.