The percentage of Portuguese consumers who felt financially comfortable at the end of the month rose to 37% in 2024, an increase of three percentage points from the previous year, boosting consumption, as revealed in a report released today by Deloitte.
Data from ConsumerSignals, a Deloitte Global database that collects information on consumer spending patterns in various countries, indicates this trend reflects “a recovery in confidence and economic stability compared to the previous year.”
The report also highlights an increase in the proportion of Portuguese who said they could spend on things that bring them joy: 39%, a two percentage point increase from 2023.
Similarly, last year saw a decline in the number of Portuguese who assessed their financial situation as worse than the previous year, dropping from 46% to 37%. Concerns about inflation decreased, while the propensity to consume increased, “signaling a growth in financial confidence.”
Throughout 2024, Deloitte’s report also notes an improvement in the perception of financial status among the Portuguese.
“Compared to the previous year, national consumers felt financially more stable, with a well-being index above the global average,” it states, detailing that about 37% expected an improvement in their financial situation next year, up three percentage points from December 2023.
Despite these “positive signs,” the consultancy states that “concerns about the future and financial security remained high,” with younger consumers (18-34 years old) being the most optimistic: 52% believed their financial situation would improve, compared to 46% at the end of 2023.
Additionally, Portugal remained “among the European countries most concerned about rising prices, with more than half of consumers focusing on managing this impact.”
Nevertheless, the intention to consume among the Portuguese increased throughout last year, particularly in non-essential categories, with a growth of 24 percentage points compared to December 2023.
Deloitte notes this increase was “particularly significant” among consumers aged 18 to 34, who recorded a 37% increase in spending intentions and a 39% increase in saving intentions.
The sectors where the Portuguese spent the most were varied, with spending intentions in categories like “leisure, entertainment, and recreational travel” (+1%), “restaurants/takeaway” (+1%), and “electronics and furniture” (+1%) slightly increasing compared to the previous year, while “housing” (-4%) and “supermarkets” (-3%) saw a relative decline in family spending.
In the automotive sector, the report notes a slight decrease in the intention to purchase vehicles across all analyzed regions, but the drop was “more pronounced” in Portugal: 15% of Portuguese planned to buy a car in the next six months, a decrease of two percentage points compared to the previous year, compared to 18% at the European level.
The ConsumerSignals platform gathers data monthly through surveys of thousands of consumers in 20 countries. In Portugal, 1,000 consumers are surveyed monthly on topics such as financial well-being, consumption patterns, savings, and spending intentions in areas like food, transportation, or health.
