Economy: Luxembourg residents intend to spend 12% less on the holidays than last year, a major consulting firm and business trade group have said.
Luxembourg households have a planned budget of €815 for holiday festivities and gifts, according to Deloitte’s 15th annual consumer survey, which in the Grand Duchy was conducted for the first time with the Confédération Luxembourgeoise du Commerce, and released Thursday. That is down from more than €900 last year and from €1,200 in 2010.
Money was the most “desired” item on Luxembourg residents’ wish lists (45%), followed by travel (38%) and books (34%), the study found. The most popular presents Luxembourg inhabitants plan to give are books (41%) and cosmetics and perfume (28%). While approximately 20% said they hoped to receive electronics such as smartphones and tablets, “only 2% to 5% intend to offer” such gifts.
Overall, the Grand Duchy had the third highest expected budget among the 18 countries covered in Europe and South Africa, behind first-placed Ireland (€966) and Switzerland (€817). Nevertheless, 20% of Luxembourg survey-takers said “they would buy less expensive gifts this year,” the organisations reported.
“Consumers are weighing their purchase decisions more carefully and price is becoming an increasingly important factor in the year-end expenditure decisions,” Georges Kioes, a partner at Deloitte in Luxembourg, told the press. “Although there is still a strong desire to enjoy year-end festivities, consumers are being careful about how they spend their money.”
More than half of respondents in the Grand Duchy had “a more negative impression of the economic future” and “79% of the Luxembourg consumers think that their spending power will be stable or deteriorate in 2013,” according to the report.
Deloitte noted that economic pessimism also rose in Poland, the Czech Republic, Spain, South Africa and Slovakia. On the other hand, respondents in Belgium, France and Germany were less pessimistic than last year, “as well as, surprisingly, in Greece, Italy and Portugal.”
