Europeans are cutting back on new clothes, much more than any other expenses, as more than half of them remain pessimistic about the economy, according to a new survey from the Boston Consulting Group (BCG).

The survey, done in partnership with NativeResearch, polled more than 20,000 consumers in 11 European countries last April. It painted a picture of “financial distress,” as 56 percent said they feel bad about the economy, the highest this figure has been since BCG started the annual survey in 2024.

“This pessimism is causing financial distress. More than half, or 53 percent, of European consumers are worried about their daily personal finances, up from 40 percent in 2024. Six in ten are concerned about having enough money in retirement,” BCG’s report read.

Even if they had a hypothetical windfall of up to 15 percent in extra income, more than half said they would rather save the money. Spending on experiences such as travel and dining out was considered the second priority.

Consumer sentiment over the past six months was also dire. To gauge this, the survey looked at net spending, which refers to the percentage difference between the share of consumers who reported an increase in spending and those who reported otherwise.

Groceries and pet care were the only categories that saw a positive net spending—and that, the survey said, is largely because of “increasing prices rather than greater volume.”

Fashion placed the last, indicating “pure abstention.” There were also sharp distinctions with what consumers considered essential and indulgent in this specific category:  footwear (–12 points net spending), casual wear (–13 points), and sportswear (–14 points) have held up better than formal and evening wear (–20 points), handbags (–23 points), and accessories (–22 points).

“After two years of uncertainty and cut-backs, value-seeking is now deeply embedded in consumer behavior,” BCG noted.

Nearly two-thirds, or 63 percent, of consumers will only buy at a discount, which is the same the same as last year. This figure is even higher in fashion: 73 percent.