Households in Spain are feeling the squeeze like never before, with new data revealing economic stress levels are approaching ‘very high’ territory as the cost of living continues to climb.

According to the latest report from the Cetelem Observatory, Spain’s Consumer Economic Stress Indicator now stands at 71 out of 100 – dangerously close to the 75-point threshold that signals a full-blown financial pressure crisis.

With prices still rising – particularly for energy, fuel and food – families across Spain are already planning major changes to how they spend.

Top of the list? Cutting back on leisure as:

• 78.7% say they will reduce spending on eating out, entertainment and social activities
• 75.2% will switch to cheaper products
• 70.4% plan to delay big purchases
• 69.6% will use their car less
• 65.8% aim to reduce overall spending
• 64.4% want to increase precautionary savings

Fuel prices changing daily life

The impact of rising fuel costs driven in part by tensions in the Middle East is already reshaping daily routines.

Some 30.5% of households say they will cut some journeys, while 27.2% will use their car much less and 22.4% will reduce usage moderately.

Only a small minority plan to carry on as normal.

Supermarket habits shifting

At the checkout, shoppers are becoming more strategic:

• 40% are actively hunting for deals and promotions
• 32% are buying more supermarket own-brand products
• 21% are cutting out certain items altogether

Travel and lifestyle taking a hit

It’s not just groceries, as lifestyle spending is taking a serious knock, in what could have a negative impact on Andalucia’s vital tourism industry.

According to the survey:

• 68% of people say they are cutting back significantly on leisure
• Around one in three are travelling less or cancelling holidays
• 22% are making smaller adjustments to travel plans

Meanwhile, many households are also looking to save on energy by:

• Using less heating or air conditioning
• Cutting electricity and gas consumption

Savings under pressure

As costs rise, savings are becoming a balancing act:

• 27.7% will dip into savings to maintain financial stability
• 27.4% will use savings to cover rising expenses
• 22.6% admit they will simply save less

A warning sign for the economy

The findings suggest Spain is edging closer to a consumer slowdown, with spending cuts likely to ripple across the economy.

With financial pressure nearing critical levels, even small price increases could push households into a more difficult phase in the months ahead.

Read more Andalucia news at the Spanish Eye.