Swedes spending less and saving more

Swedes spending less and saving more
One fifth of Swedes are buying less as a result of the financial crisis. Among low income earners, close to a third have reduced their spending in the wake of economic turmoil, according to a new study from insurance company Länsförsäkringar.

The crisis has hit low-income earners the hardest, and they, to a greater extent than high-income earners, have not only cut back on purchases of clothes and shoes, but also food, toiletries, and other consumables. Low-income earners have also reduced their purchases of housewares, home electronics and travel.

“It is clear that households with fewer economic resources have become more restrained with what they consume. Worry about the labour market might be one reason why a large percentage of Swedes are cautious with their purchases,” said Elisabeth Hedmark, personal finance expert at Länsförsäkringar, in a statement.

According to the study, 7 percent of the population has increased its savings in bank accounts. High-income earners, to a greater extent than low-income earners, have increased their savings in stocks and mutual funds.

The data is based on a survey of 7,800 people between the ages of 16 and 69 done by PFM Research for Länsförsäkringar.

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