Romanians cut spending for sixth month as cost of living bites

Romanians are tightening their belts, with consumer spending experiencing a continuous decline for the sixth consecutive month. June recorded the most significant drop, with retail sales falling 7.3% compared to the same period last year, signaling a deepening trend of consumer caution.

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People have less money available, especially since inflation has swallowed a good part of their income.

This sustained reduction in spending suggests that consumers are adjusting their financial habits in response to an unpredictable economic climate. Monthly sales figures throughout 2026 have consistently fallen below 2025 levels, with decreases ranging from 3.8% to 7.3%. This pattern indicates a growing prudence in household budgeting, with consumers carefully weighing purchases, revising expenses, and prioritizing debt reduction.

Economist Adrian Negrescu described the situation as an "economic ice age," where diminishing purchasing power, eroded by inflation, forces consumers to make difficult choices. Many are opting for cheaper alternatives, delaying significant purchases like cars or home renovations, and prioritizing short-term financial flexibility. A recent survey revealed that nearly 34% of respondents are constantly reviewing their expenses and avoiding long-term commitments, while over 18% are postponing major financial decisions until the economic outlook clarifies.

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They are constantly reviewing their expenses and avoiding long-term commitments.

The rising cost of living remains a primary concern, with 68% of those surveyed expressing anxiety about it in the coming year. General economic crisis fears and concerns about unforeseen expenses also weigh heavily on consumers' minds, further contributing to the cautious spending environment.

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They are postponing important financial decisions until the economic context becomes clearer.