There are likely to be fewer or at least smaller presents under many Christmas trees in Germany this year: around one in two people (47.3 percent) are cutting back on their holiday spending, according to a YouGov survey commissioned by Postbank, which is part of the Deutsche Bank Group .

According to their own statements, 21 percent of the 2,120 adults surveyed want to spend “significantly less” money on Christmas presents than last year, while 17.4 percent plan to spend “a little less”. According to the survey carried out from October 27th to 30th, 8.9 percent cannot afford to spend money on Christmas presents.

The general rise in prices for energy and food, among other things, has been putting pressure on private households for months. According to surveys, many people feel forced to limit their consumption because they only have enough money for the necessary expenses of everyday life. Recently, the annual inflation rate has at least fallen.

Almost a third of those surveyed (32.4 percent) stated in the current survey that they were planning an unchanged Christmas budget for this year. 4.1 percent even want to spend more money on gifts than a year before.

Financial confidence is growing

Looking ahead, many people’s confidence is growing: Compared to last year’s survey, significantly more people now rate their financial situation positively in the coming year. The proportion of those who are “very optimistic” or at least “somewhat optimistic” about the next year increased from 25.2 percent to 42.9 percent. The proportion of those who believe that their finances will develop disadvantageously for them decreased from 62.1 percent to 45.4 percent compared to the 2022 survey.

According to Ulrich Stephan, Deutsche Bank’s chief investment strategist for private and corporate customers, among other things, the significantly reduced inflation rate and the easing of the energy crisis are responsible for the change in mood. “There are of course a variety of challenges both in Germany and around the world. Nevertheless, the gas storage facilities are well filled, and a shortage next winter seems unlikely,” explained Stephan. “Inflation has now also fallen to 3.8 percent in Germany. That is still high, but the direction is in the right direction. In this respect, many challenges remain, but the problems are not acute at the moment.”