According to a recent survey by the German Retail Association (HDE), the population is currently more reluctant to make purchases and purchases than it has been for a long time.
The HDE measures consumer sentiment with its consumption barometer. This index value fell to below 87 at the beginning of August and thus to an all-time low, as the association announced on Monday.
Uncertainty about energy prices and income
According to the HDE, the background is the uncertainties surrounding the future development of energy prices. Weak consumer sentiment is also to be expected in the next three months, it said. “In addition, one’s own income expectations have deteriorated compared to the previous month and there is therefore less scope for consumption activities or the expansion of savings.”
According to the trade association, the post-pandemic consumption boom that was hoped for a few months ago will therefore fail. In view of the discussions in the media, people and companies are also concerned about a possible recession in Germany and are pessimistic about the overall economic situation. Compared to the previous month and the same period of the previous year, the economic expectations are therefore falling.
How will private consumption develop?
When it comes to inflation, people are more confident. According to the survey, they are not expecting any further increase and are hoping for a slowdown in price increases.
The deterioration in consumer sentiment is due to consumer uncertainty, said the HDE. It is still uncertain how much people will actually spend in the end, but the association is assuming that consumer spending will be reluctant in the coming weeks. (dpa/FashionUnited)