High Uncertainty Shapes Assessments of Private Households

Private households are facing challenges as a result of recent price increases, especially in the areas of fuel, household energy and food. This is shown by the results of a representative survey conducted by the Austrian Gallup Institute on behalf of WIFO in early October 2022. A large proportion of respondents said they would counter inflation by adjusting their behaviour, such as buying low-priced product alternatives or saving energy. In order to save energy, some respondents had made or were planning to make major purchases in their households, especially those with higher household incomes. As a result of the increased expenditure, persons in low-income households in particular feel compelled to draw on existing savings reserves. If the strong inflation continues, however, even persons in middle-income households will increasingly have to liquidate savings reserves. As a result of the rise in financing costs and the increased need for equity, only one-third of respondents stated that they still intended to implement their planned real estate acquisition and refurbishment projects.