Retail trade Consumer climate in Germany takes a break from recovery
The buying mood of Germans has not improved recently. The recovery in consumer sentiment has paused, the Nuremberg-based institutes GfK and NIM announced on Wednesday on the basis of their latest study on the consumer climate in Germany.
26.06.2024, 09:06
SDA
Expectations regarding both income and the development of the economy have been dampened. The propensity to make major purchases also decreased slightly compared to the previous month.
On the other hand, the already high propensity to save increased again slightly. "The interruption of the recent upward trend in the consumer climate shows that the path out of the consumer slump will be difficult and that setbacks may occur again and again," said NIM consumer expert Rolf Bürkl.
The consumer climate has recently risen for four months in a row. In the forecast for July, it has now reached a value of -21.8 points. In comparison: before the coronavirus pandemic, the consumer climate was comparatively stable at around +10 points.
Rising prices spoil the desire to buy
"The slightly higher inflation rate in the country again in May is causing more uncertainty among consumers, which is also reflected in the increase in the propensity to save," emphasized Bürkl. "For a sustainable recovery in consumer sentiment, consumers need planning security - in addition to the existing real income growth - which is particularly necessary for larger household purchases," he said. The rise in prices must be curbed and clear prospects for the future must be shown.
"The current reluctance to buy is largely due to rising prices," the institutes continued. Hopes of a rapid economic recovery are also clouded. Nevertheless, it can be assumed that the recovery will continue in the second half of the year.
The institutes surveyed consumers between May 30 and June 10, 2000. The interviews were conducted on behalf of the EU Commission.
