Gen Z Consumer Confidence on the Rise

*Index = Pct. Positive Outlook - Pct. Negative Outlook

Parallel to the improved financial outlook, the index showing Gen Z's expected spending has also risen by 6 percentage points. This increase signifies a greater willingness to spend, likely driven by the enhanced Gen Z confidence in their financial outlook.

Different Perspectives Across the EU5 Countries

While France and Spain follow the general trend of the financial situation improving in parallel with the expected spending, the results for other countries present a more nuanced view.

Germany is the only EU5 country where the expected spending index (+9 pp compared to Wave 1) is higher than the financial situation index (+11 pp), indicating remarkably high Gen Z consumer confidence. This is possibly explained by the country's most stable and promising financial situation among the EU5.

British Gen Z feels slightly more optimistic about their personal finances (+4 pp), possibly influenced by the lowest inflation rate in the UK in almost three years. However, Brexit and the subsequent economic downturn may be leading to cautious spending habits (-1 pp in expected spending).

Gen Z in Italy expects to spend more (+9 pp) despite a slightly negative outlook on their financial situation (-2 pp). Italian consumers have traditionally shown lower saving rates compared to their counterparts in the EU5, and this trend might also extend to Gen Z.

What this Means for Businesses

The surge in consumer confidence and spending expectations among Gen Z offers substantial opportunities for businesses.

Brands can capitalise on this trend by developing products and services that resonate with Gen Z's evolving preferences and values. This could involve introducing new product lines, or emphasising product features which align with Gen Z's priorities.

Brands who already target Gen Z with their products and services can anticipate higher consumer spending and should strategise accordingly. This means planning sales, marketing, and promotional activities to leverage this increased consumer demand.

While the overall Gen Z outlook on their financial situation and spending is positive, there are notable country differences that should be taken into consideration when tailoring marketing strategies for a specific market.