The mood of local consumers has brightened somewhat. The German Trade Association (HDE) said this on Monday with a view to the results of the current HDE consumption barometer. The monthly index, which is based on surveys of 1,600 people on consumption-related topics, increased slightly again compared to the previous month of January.
The industry organization explained that the “positive trend” had continued, but at the same time warned against expectations being too high. Although the consumption barometer has climbed to “the highest level since last summer,” overall sentiment remains “weak.” It now remains to be seen “whether consumers in Germany will remain unaffected by geopolitical turbulence in the coming weeks, whether they will overcome their uncertainty and whether the upward trend can continue.”
The association expects an increase in private consumption
Those surveyed recently assessed the development of the overall economy more positively than in January. Accordingly, expectations regarding their own income were also more optimistic.
The hope of additional financial resources led to a slight increase in consumers’ willingness to buy compared to January. However, the propensity to save remained almost unchanged. “The macroeconomic and geopolitical environment appears to continue to cause uncertainty and the desire to strengthen one’s own financial cushion,” explained the HDE. “However, the time of weakening private consumption is over. It can be assumed that it will increase in the next few months.”
However, before “a noticeable recovery with significant growth” begins, “the economic conditions must improve,” warned the association. The prerequisite for a further increase in private consumption is that consumers “see the opportunity for a sustainable economic upswing”.
