Consumers divided: desire to buy decreases, economic expectations increase

There was a certain disunity among consumers in Germany at the end of the winter: the desire to buy decreased slightly in February, while expectations regarding the economy improved somewhat, according to the consumer research company GfK on Wednesday as the result of its most recent survey in Nuremberg. The GfK consumer climate index fell from -6.7 points to -8.1 points. On the other hand, analysts had expected a slight increase on average.

Overall, the GfK consumer researchers calculated a weaker consumer climate than a month earlier. The consumer climate is thus continuing its downward trend after a short breather.

A slight decrease in the propensity to save in February prevents the decline from being even more pronounced. According to the Nuremberg experts, the reason for the cooling is also the development in the corona pandemic. During the survey period, the number of new infections rose sharply. In addition, the persistently high inflation is putting pressure on the willingness to buy.

“Above all, the expectations of a significant easing in price developments at the beginning of the year have been dashed for the time being, because the inflation rate is still at a high level,” said GfK consumer expert Rolf Bürkl. This currently poses the greatest threat to the income expectations of people in Germany High energy and food prices weakened purchasing power.

However, the lifting of numerous pandemic restrictions in Germany gives reason for hope for the next few months. “If this were supported by a moderate increase in prices, the consumer climate could finally recover again in the long term,” said Bürkl.

In addition to taking effective measures against the sharply rising prices – especially in the energy sector – it will be important that the supply chain problems in branches of industry important for Germany are further defused, stressed Bürkl. (dpa)

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