The mood of German consumers apparently did not deteriorate any further in February.
“The curve is moving sideways; the negative development at the beginning of the year was not the start of a further downward trend,” explained the German Trade Association (HDE) on Monday. The industry organization referred to the current HDE consumption barometer for February, which was slightly above the previous month’s level. The monthly index, which is created by the Handelsblatt Research Institute on behalf of the HDE, is based on a survey of 1,600 people on consumption-related topics.
Despite the slight increase in the consumption barometer compared to January, the purchasing mood “still lags behind the values before the Corona crisis,” explained the association. “Consumers continue to maintain a certain level of reluctance to consume,” said the HDE. In the coming weeks, “private consumption will not be a growth driver for the national economy.”
The trade association continues to assume a “certain level of uncertainty” among consumers
According to the current survey, participants rated the overall economic development somewhat more positively than in the previous month. “The slight improvement in sentiment compared to January fits with the current economic forecasts, most of which expect rather small growth in gross domestic product this year,” explained the HDE. Accordingly, individual income expectations also improved slightly.
In view of the increasing hope for income growth, the propensity to buy also increased. At the same time, according to the survey results, the intention to invest savings also increased. “Basically, the plans still show a certain degree of uncertainty,” the association admitted. “There is no significant increase in consumption.” Instead, consumers “continue to act cautiously” and “have an eye on securing a financial cushion”.