In view of numerous geopolitical and economic uncertainties, the buying mood of German consumers has continued to deteriorate. This emerges from the consumption barometer for September, which the German Retail Association (HDE) published on Monday. Accordingly, the index, which is based on the survey of 1,600 representatively selected people on consumption-related topics, fell to a “new all-time low”. The main reason is that “the significantly rising cost of living is becoming more and more important in everyday life,” said the HDE.
Almost all relevant sub-indicators from which the HDE consumption barometer is calculated fell further compared to the previous month of August. The consumers surveyed were again more pessimistic about the overall economic development. At the same time, individual income expectations fell. According to the authors of the study, the recently extremely high inflation also had an effect here, which is putting a strain on disposable household income and thus “reducing the financial basis for private consumption”. In addition, those surveyed expected interest rates to continue to rise.
Trade association warns of low mood “until next spring”
In view of the expected financial burdens, the propensity to buy among the study participants decreased again compared to August. The market researchers explained that the “declining income expectations and rising cost of living” made consumers “more cautious about unnecessary consumption”. The propensity to save was also slightly below the level of the previous month. Due to the shrinking financial income, consumers “could not set aside larger amounts,” the reasoning goes.
According to the HDE, there is currently little hope of a positive trend reversal in the near future. Rather, “autumn was still characterized by further uncertainties regarding the energy supply and the corona pandemic”. A “brightening of consumer sentiment” is therefore “almost impossible” in the coming weeks. Ultimately, consumer sentiment could “remain at a low level until spring next year,” warned the authors of the study.